INDIA RESEARCH STUDY FOR CALIFORNIA AGRICULTURAL EXPORTERS · PDF filereport india research study for california agricultural exporters bryant christie inc. i nt ernat i o n al a ff

INDIA RESEARCH STUDY FOR CALIFORNIA AGRICULTURAL EXPORTERS

BRYANT CHRISTIE INC. I N T E R N A T I O N A L A F F A I R S M A N A G E M E N T

R E P O R T

Prepared by Bryant Christie Inc. for the Buy California Marketing Agreement

January 31, 2008

Seattle Telephone: 206 292 6340 Sacramento Telephone: 916 492 7062

Hypercity, Mumbai

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 III. METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

IV. COUNTRY AND MARKET OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

POPULATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 FOOD RETAIL SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 HOTEL/RESTAURANT/INSTITUTIONAL SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 CONSUMPTION TRENDS/CULTURAL NUANCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 MARKETING AND PROMOTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

V. COMPETITION AND DISTRIBUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 LOCAL AGRICULTURAL ECONOMY AND PRODUCTION . . . . . . . . . . . . . . . . . . . . . . 16 IMPORT/EXPORT TRADE AND STATISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 LOGISTICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 TRADE POLICY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

VI. ADDITIONAL INFORMATION FOR CALIFORNIA EXPORTERS . . . . . . . . . . . . . . . . . 34 LANGUAGE AND COMMUNICATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 BUSINESS CULTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 SCHEDULING APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 TIME TO VISITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

VII. CONCLUSION AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

APPENDICES IMPORT PERMIT: ISSUING AUTHORITIES LABELING REQUIREMENTS INDIAN IMPORTERS OF U.S. CONSUMER FOOD PRODUCTS INDIAN IMPORTERS OF FRESH PRODUCE

INDIAN IMPORTERS OF DRY FRUIT INDIAN IMPORTERS OF U.S. CONFECTIONARY SNACK FOOD PRODUCTS INDIAN IMPORTERS/DISTRIBUTORS OF LIQUOR AND WINE FOOD RETAIL CHAINS TRADE SHOWS

India Research Study for the California Agricultural Exporters January 31, 2008, Page 1 of 35

I. EXECUTIVE SUMMARY

Marketing conditions for imported agricultural products have improved considerably in India as a result of its growing economy and rising number of middle class consumers. With annual growth rates of more than seven percent since 1996, India’s economy is expanding rapidly, enabling greater economic prosperity. As a result, there will be an estimated 583 million middle-class Indian consumers by 2025.1 Opportunities for California products are concentrated in large urban areas that boast strong per capita incomes, high population density, and modern organized retail systems. These urban areas are dispersed throughout India. Although the distribution systems to reach them are fragmented, they are improving. Modern organized retail includes supermarket, hypermarket, and convenience store formats. These outlets offer the best point of sale distribution opportunities for California products due to their infrastructure and more affluent consumer base. Middle class consumers are increasingly shopping in the organized sector for the convenience and quality it offers. Meanwhile, opportunities are limited in the Hotel, Restaurant and Institution (HRI) sector for California agricultural products, with the exception of wine. Demand for Western foods is growing, however, premium hotels and restaurants are limited. Greater opportunities are anticipated with the growth of international restaurant chains. India is a significant world producer of fruits, vegetables, and grains. However, India still imports many agricultural goods in order to feed its large population and supplement domestic production. India sources several agricultural products from California including almonds, table grapes, and oranges. India also sources many other products from foreign producers that are in closer proximity such as Pakistan. California agricultural producers and exporters still face a number of constraints in the Indian market. One major constraint is India’s high tariff rates on agricultural products, which range from 25 percent to over 125 percent. India also levies taxes and fees which add up to an additional 30 percent. Furthermore, phytosanitary restrictions on imported agricultural products from California are significant and other documentation requirements can be onerous. Despite these constraints, there are strong opportunities in India for California agricultural products. BCI recommends carefully assessing market access and competitiveness, then working closely with local partners to successfully launch and promote new California products.

1 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006. www.fas.usda.gov/gainfiles/200612/146269832.pdf


II. INTRODUCTION

In September 2007, Bryant Christie Inc. (BCI) was retained by the Buy California Marketing Agreement (BCMA) to study the market for California agricultural products in India. The objective of the Indian market research study is to provide information about the current market potential for California agricultural products. This report provides a basis for interested California agricultural product suppliers on market potential, entry, distribution, and marketing. The project consisted of desk research augmented with in-country assistance. It should be noted that the BCMA received grant funds from the California Department of Food and Agriculture (CDFA) for this project.

III. METHODOLOGY

BCI conducted extensive desk research while preparing this report. Sources included the United State Department of Agriculture (USDA) Foreign Agricultural Service (FAS) attaché reports, CIA World Factbook, U.S. and India government websites, the Global Trade Atlas, and news articles. BCI also worked with SCS Group, an Indian consulting firm with expertise in the food and agricultural market in India. It is important to note that not all agricultural products available in California were included in this research. Instead, this report focused on broader product categories and detailed information on specific products was provided where available. Product categories include fresh fruit (table grapes, figs, oranges, lemons, cherries, pears, and tree fruits), dried products (raisins, figs, almonds, and pistachios), processed products (olives and tomato), and wine.

IV. COUNTRY AND MARKET OVERVIEW

India’s large population and growing middle class make it a market of significant interest for California products. However, the country’s current levels of poverty and under-developed infrastructure confine opportunities for California products to only the most prosperous areas of India.

POPULATION

India’s large population is one of the primary reasons India has attracted the attention of worldwide suppliers. Specifically, India has a population of more than 1.1 billion and is the world’s second most populous country after China. Moreover, India’s population continues to grow at 1.6 percent per year, representing more than


13 million new citizens each year.2 Given this rate of growth, over 58% of India’s population is under the age of 20.3 India combines high population with very high population density.4 In addition to its three largest cities which have between 12-16 million residents, India has 24 other cities with over one million residents. Further, the urban population is projected to grow from 318 million in 2007 to 523 million by 2025.5

ECONOMY

The growth of India’s middle class reflects the overall economic growth and prosperity of the Indian market. India became the world’s twelfth $1 trillion economy in April 2007.6 As a major provider of services worldwide, India’s service sector provides over 60 percent of Gross Domestic Product (GDP). Further, the Indian economy has grown at more than seven percent each year since 1996 and is expected to double by 2010. India’s middle class is growing rapidly, providing a larger consumer base with the necessary disposable income to make the country a major consumer of imported goods. Middle-class is defined as households with real annual disposable income of approximately Rs 200,000 to 1,000,000 (US$5,090.35 to $25,451.77). FAS reports there will be 583 million middle-class Indians by 2025. This will move India up from the world’s twelfth largest consumer market to the fifth.7 Products that enter the market as this expansion is occurring will be well-positioned to establish themselves as the trusted brands of these new middle class consumers. In contrast to the spending growth among India’s middle class, almost 80 percent of the Indian population still lives on less than two dollars per day and most consumers make purchase decisions based on low prices rather than food quality and variety. Overall, Indians spend 51 percent of their income on food, but this is mainly for basic food items.8 Therefore, most consumers simply do not have the disposable income to purchase more expensive imported products. For this reason, it is important for California exporters to target areas with concentrated wealth that provide the greatest opportunities for imported products.

2 “2007 India Country Commercial Guide.” U.S. Commercial Service. June 2007. 3 “2007 India Country Commercial Guide.” U.S. Commercial Service. June 2007. 4 “2007 India Country Commercial Guide.” U.S. Commercial Service. June 2007. 5 Beinhocker, Eric D., et al. “Tracking the Growth of India’s Middle Class.” The McKinsey Quarterly. 2007. 6 “India, now a $1-trillion economy!” Rediff. 26 April 2007. http://inhome.rediff.com/money/2007/apr/26india.htm 7 Beinhocker, Eric D., et al. “Tracking the Growth of India’s Middle Class.” The McKinsey Quarterly. 2007. 8 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006.

www.fas.usda.gov/gainfiles/200612/146269832.pdf


Source: Reproduced from the Government of India – National Portal of India

Top 10 States with the Highest Per Capita Income

State Per Capita

Income, US$ (2005-06)

Population, millions (2001)

Population Rank

Average Household Size

Chandigarh (central) 1,735 0.9 29 4 Delhi (north) 1,257 13.9 18 5 Goa (west) 1,214 1.3 26 5 Pondicherry (south) 930 1.0 28 5 Haryana (north) 764 21.1 16 6 Maharashtra (west) 743 96.9 2 5 Punjab (north) 731 24.4 15 6 Andaman & Nicobar Islands 698 0.4 32 5

Himachal Pradesh (north) 694 6.1 21 5 Gujarat (west) 678 50.7 10 5

The map and chart above show the concentration of wealth per capita by state in India. In general, states in southwestern and northern India have the highest per capita incomes. However, while per capita income is an important indicator of buying power, per capita income alone is not an adequate gauge of market attractiveness. Instead, the best markets for imported products are likely to be in areas with high per capita incomes combined with high population density. For example, the state of Chandigarh has the highest per capita income of US$1,735; however, it has a fairly small population with less than one million people.9 On the other hand, Delhi, which has the second highest per capita income, provides a larger consumer base and better opportunities for imported food

9 India’s Ministry of Finance and India Census, 2001


products. The per capita income in Delhi is US$1,257 with 13.9 million consumers.10 The table below lists India’s most populous cities and consumer buying power in each:

City State

City Population,

millions (2001)

State Per Capita

Income, US$

(2005/06)

No. of Household

s in the State (2001)

Average House-

hold Size

% of Middle Class*

Mumbai Maharashtra 16.4 743 19,063,149 5 48.1

Kolkata West Bengal 13.2 524 15,715,915 5 36.8

New Delhi Delhi 12.8 1,257 2,554,149 5 51.0 Chennai Tamil Nadu 6.4 621 14,173,626 4 22.8

Bangalore Karnataka 5.7 558 10,232,133 5 40.0

Hyderabad Andhra Pradesh 5.5 544 16,849,857 4 31.0

Ahmadabad Gujarat 5.0 678 9,643,989 5 37.8

Pune Maharashtra 4.0 743 19,063,149 5 48.1 Source: India Census 2001 and Government of India - Ministry of Finance 1 USD = 39.1300 INR *based on the percent of households within the State with availing banking services

FOOD RETAIL SECTOR

The growth of India’s economy over the past ten years has resulted in the expansion and modernization of the retail sector. According to the India Brand Equity Foundation (IBEF)11, there are now approximately 12 million retail outlets in India, of which more than five million are food retail outlets. The total retail market is valued at $330 billion, of which the organized retail sector represents four percent of the total market and is expected to increase its market share to 22 percent by 2010.12 The growth trend of the organized retail sector presents significant opportunities for California agricultural exporters. The retail sector in India is divided into two categories: unorganized and organized retailing. Unorganized retailers or traditional retailers are small, independent, single outlet, family-owned operations, also known as kirana stores. Unorganized retailers represent approximately 99.2 percent of the food and grocery retail sector in 2005/06.13 Organized retailers include cash and carry, discount, hypermarkets, supermarkets and convenience stores. Imported products are predominantly available at organized retail chains and grocery stores that cater to high-end consumers in major urbanized cities, although some fresh fruits have limited distribution in independent shops and vendors.

10 India’s Ministry of Finance and India Census, 2001. 11 IBEF is a public-private partnership between the Ministry of Commerce and Industry, Government of India, and the

Confederation of Indian Industry. 12 “Retailing.” India Brand Equity Foundation. 4 December 2007. www.ibef.org/industry/retail.aspx

13 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006. www.fas.usda.gov/gainfiles/200612/146269832.pdf


Organized retailers, specifically hypermarkets and supermarkets, offer the best potential for the sale of imported California products due to better infrastructure and distribution systems. As organized retail expands, distribution opportunities for California products are likely to grow. Currently, the organized sector represents only 0.8 percent of the market; however, organized retail is expected to expand at a growth rate of 30 to 35 percent each year.14 Although approximately 40 percent of the organized retailers are currently located in smaller cities, the most significant expansions in the modern retail sector are occurring in urban areas including Mumbai, Delhi, Pune, Hyderabad, Bangalore, Chennai, and Kolkata.

Regional Differences India’s retail sector is highly segregated by geography. Historically, retailers were primarily located in Southern India; however, in recent years the Western and Northern areas of India have developed and more retailers have expanded their stores to these two regions. California agricultural products are more likely to penetrate the more developed regions of India (South, West and North) where organized retailers are expanding and consumers are more likely to know about imported offerings and more able to afford them. Southern India: Historically, most organized retail has been concentrated in Southern India due to better distribution technology, cheaper real estate, and a greater degree of Western influence in the region. Importantly, the Southern region offers more organized transportation systems and cold storage facilities. This infrastructure provides reliable delivery and minimizes product deterioration and damage. As a result, modern retail began in here and it continues to be one of the leading regions for organized retail.15

Percentage of Indian Retail Stores by Region*

South56.0%North

22.1%

West19.6%

East2.1%

Central0.2%

*Percentage based on retailers listed in the table on page 9

Western India: Due to favorable consumer characteristics and higher incomes, many retail chains have recently expanded to Western and Northern India. Western India has the highest per capita income in India and the strongest consumer product awareness. Residents in the West receive the highest level of education

14 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006.

www.fas.usda.gov/gainfiles/200612/146269832.pdf 15 “Aditya Birla Retail sees growth in South.” Business Standard. 26 January 2008. www.business-

standard.com/common/news_article.php?leftnm=1&autono=311725


and are well traveled (internationally) compared to other regions. Mumbai, one of the major cities and the financial capital of India, is located in West India.

Northern India: Northern India is another region influenced by Western culture. The growing population in Northern India has been a key factor in the significant growth of organized retailers in the region. The North is considered an emerging retail market for international brands and national retailers and is one of the leading regions in organized retailing.16 The capital of India, Delhi, is located in North India. Eastern India: Meanwhile, the Eastern region of India is still highly underdeveloped and will not likely be a potential market for California products in the short-term. The East has the lowest average per capita income (Rs. 10,315 or US$264) across India. Due to financial barriers, most consumers do not have the means to purchase imported products and shop almost exclusively in unorganized retail outlets. Retail Formats Historically, consumers in India shopped several times a week and visited specialty stores (fruit/vegetable, meat, household stores) to purchase specific products. Such specialty stores, called kirana stores, are very small, typically ranging from 100 to 500 square feet, and primarily sell non-perishable food products due to the lack of cold storage infrastructure. These stores are therefore not a feasible distribution option for most fresh California agricultural products. To meet changing consumer demand for greater convenience and quality, some Indian retailers are introducing supermarket, hypermarket, and convenience store formats. The number of supermarket and convenience store outlets remains low compared to the number of independent outlets in India. However, many large retailers, such as Food Bazaar, Spencers, and Aditya Birla, are rapidly opening hypermarket stores throughout India. As this modern sector becomes more competitive, retailers are looking for products that will help them to differentiate their offerings, including imported products. The infrastructure available at the supermarkets and hypermarkets presents a viable point of distribution for California produce. Supermarket stores typically have 3,000 to 6,000 square feet of floor space and are usually located within 3 to 4 km (1.9 to 2.5 miles) from consumers’ residences. Supermarkets, such as Foodworld, Tinethra and Nilgiri’s, focus on weekly and monthly needs of consumers while hypermarkets or larger discount stores cater to consumers’ bulk shopping. Hypermarkets are large - 25,000 to 100,000 square feet - and carry both food and non-food items in large packages. Some of the main hypermarkets in India include Spencer’s, Big Bazaar, and Star India Bazaar.

16 “'The Shop' summit reckons North India is leading in organized retailing.” IndianTelevision.com. 28 June 2006.

http://indiantelevision.net/mam/headlines/y2k6/june/junemam132.htm


Despite the rapid growth of supermarkets, hypermarkets, and convenience stores, accessibility and affordability issues present significant barriers for retail expansion into rural areas. Distributors are the main channel through which most modern retailers source imported products and these distributors are primarily located in large metropolitan cities and their suburbs. Moreover, the affluent consumer base more likely to shop in modern outlets is concentrated in urban areas. The following table is a list of some of the leading organized retailers (potential destinations for California agricultural products):

Organized Retailers in India

Retailer Format # of Outlets

Sales ($

million)17

Purchasing Agent Locations

Subhiksha (Subhiksha Trading Services Pvt.)

Supermarket and discount stores

1,00018 $74.1 Local manufacturers and distributors

Delhi, Uttar Pradesh, Punjab, Hariyana, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu

Reliance Fresh and RelianceMart (Reliance Industries Ltd.)

Convenience stores and hypermarkets

300 Reliance Fresh and 1 RelianceMart19

$66.0420 Directly from local manufacturers and importers, and interested in sourcing directly from exporters

Hyderabad, Jaipur, Chennai, NCR, Guntur, Vijayawada and Visakhapatnam

Food Bazaar (Pantaloon Retail India Ltd.)

Supermarkets 11021 $76.2 Mainly distributors; directly from local manufacturers and few importers

National (major metros and larger cities)

Big Bazaar (Pantaloon Retail India Ltd.)

Hypermarket 7622 n/a n/a National (major metros and larger cities)

Spencers (RPG group)

Hypermarkets, supermarkets, convenience stores

35023 $70.8 Mainly distributors; directly from local few manufacturers and importers

Major cities in South India and some in North and West India

Star India Bazaar (Trent – retail arm of Tata Group)

Hypermarket 124 n/a n/a Ahmedabad

Hypercity/Expresscity (K Raheja Corp Group)

Hypermarket, convenience stores

1 hypermarket, 3 convenience stores25

n/a n/a Mumbai, Jaipur, and Thane

Choupal Fresh and Choupal Sagar (ITC)

Retail and wholesale

9 Choupal Fresh, 50 additional stores planned;26 12 Choupal Sagar, 51 additional stores planned27

n/a Focuses on fresh horticultural products

Choupal Fresh: Chandigarh, Pune and Hyderabad Choupal Sagar: Madhya Pradesh, Uttar Pradesh and Maharashtra

17 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006.

www.fas.usda.gov/gainfiles/200612/146269832.pdf 18 www.subhiksha.in/aboutus.htm 19 www.ril.com/rportal1/DownloadLibUploads/1190109982119_AR0607.pdf 20 www.ril.com/rportal1/DownloadLibUploads/1190109982119_AR0607.pdf 21 www.inrnews.com/realestateproperty/india/retail/pantaloon_retail_announces_lau.html 22 www.inrnews.com/realestateproperty/india/retail/pantaloon_retail_announces_lau.html 23 www.spencersretail.com 24 www.tata.com/trent 25 www.hypercityindia.com/aboutus.asp


Organized Retailers in India (continued)

Retailer Format # of Outlets

Sales ($

million)28


Nilgiri’s Supermarkets and convenience stores

3229 (plans to have a total of 50 outlets by end of 200730; plans to have 500 stores by the end of 201131)

$7632 Mainly distributors; directly from few local manufacturers and importers

Major cities in South India (Bangalore, Chennai, Coimbatore, Erode)

Trinethra/Fabmal (Aditya Birla Retail 90% shareholding; India Value Limited 10%)

Supermarkets and convenience stores

17233 (Trinethra outlets are refurbishing to More stores.)34

$67.4 Mainly distributors; directly from few local manufacturers and importers

Major cities in Andhra Pradesh, Tamil Nadu, Karnataka, and Kerala

More. (Aditya Birla Retail)

Supermarkets and hypermarkets

10035 (plans for 1,000 supermarkets and hypermarkets by 2010)36

n/a n/a Pune, Mumbai, Ahmedabad, Delhi, Vizag, Bangalore, Vijayawada and Chennai

Adani Stores Supermarkets, hypermarkets, and convenience stores

4737 (plans for additional 15 outlets in Gujarat and expansion into Maharashtra, Rajasthan, Madhya Pradesh and Chhattisgarh)

$24.7 Mainly distributors; directly from few local manufacturers and importers

Major cities in Gujarat

Indiabulls Mart and Indiabulls Megastore (Named Trumart previously. Wholesale Services acquired the stores from Piramyd Retail Ltd.)

Hypermarkets and convenience stores

35 convenience stores and seven hypermarkets (plan for 15 additional convenience stores and 30 hypermarkets in cities such as Jaipur and Ahmedabad)38

n/a Mainly distributors; directly from few local manufacturers and importers

Major cities in Maharashtra and Gujarat

Hyperexpress Convenience stores

3 n/a n/a Jaipur

Fresh @ (Heritage Foods India Ltd)

44, plans to double39 n/a n/a n/a

Namdhari’s Fresh Retail and wholesale

2 retail outlets40 n/a n/a Bangalore

26 www.regoverningmarkets.org/en/news/south_asia/india_itc_details_plans_for_choupal_fresh.html 27 www.thehindubusinessline.com/2007/01/18/stories/2007011803330500.htm 28 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006.

www.fas.usda.gov/gainfiles/200612/146269832.pdf 29 http://relianceretail.blogspot.com/2007/02/nilgiris-to-expand-from-40-to-500.html 30 www.imagesretail.com/cover_story1_aug06.htm 31 www.act.is/portfolio/nilgiris-group.asp 32 www.imagesretail.com/cover_story1_aug06.htm 33 http://economictimes.indiatimes.com/Trinethra_Birlas_first_retail_takeover/articleshow/1028058.cms 34 www.indiaretailbiz.com/blog/2007/11/04/33-trinethera-supermarkets-relaunched-as-more-storesin-andhra-300-stores-

to-be-relaunched-by-march-2008/ 35 www.adityabirla.com/our_companies/indian_companies/retail.htm 36 http://retailnu.wordpress.com/2007/11/28/aditya-birla-group-plans-1000-%e2%80%98more%e2%80%99-

supermarkets-in-3-years/ 37 www.adanigroup.com/comp_b2c.html 38 Sarkar, Ranju. “Piramyd`s Trumart is now Indiabulls Mart.” Business Standard. 30 January 2008. www.business-

standard.com/common/news_article.php?leftnm=lmnu1&subLeft=1&autono=312025&tab=r 39 www.livemint.com/2007/11/16003807/Heritage-Foods-plans-to-raise.html


Organized Retailers in India (continued)

Retailer Format # of Outlets Sales

($ million)41


Radhakrishna Foodland Pvt Ltd

Distributor/ wholesale

3 distribution centers n/a Distributes to retailers and foodservice

Mumbai and Delhi

Foodland Fresh (Radhakrishna Group)

Convenience stores

38 n/a Own distribution center Mumbai, Navi Mumbai & Thane

Metro (Metro AG, Germany)

Cash & Carry (wholesale only) and Hypermarket

5 (plans to open 35 outlets in between 2006-2008)

n/a Mainly local manufacturers and importers

Bangalore, Hyderabad, Kolkata, and Mumbai

Nuts ‘n’ Spices Specialty store 1042 n/a Imports nuts, dried fruit, confectionery, spices

Chennai

Margin Free Discount and supermarkets

300 (plans to open hypermarkets in Ernakulam, Thiruvananthapuram and Kozhikode)43

n/a Local manufacturers and distributors

Major cities in Kerala, Tamil Nadu and Karnataka

Vitan Super Stores Supermarket n/a n/a Chennai

As indicated in the table above, India-based retailers are expanding rapidly across the country; thousands of new outlets are expected to open over the next few years. Foreign retailers are also considering entering this rapidly developing sector. However, market entry by a foreign company remains subject to severe government restrictions and is limited to the wholesale sector. These restrictions show signs of relaxing however, due to pressure from local and foreign companies. As an example, the government of India relaxed its restrictions to open up foreign direct investments (FDIs) for single-branded retailing (up to 51 percent) in January 2006. Single-branded requires that only one brand may be sold in a store. For example, Starbucks could not sell its own coffee and Italian espresso machines. Meanwhile, Wal-Mart has entered into an agreement with Indian company Bharti Group, although they have not yet opened any stores. The first outlet, which will most likely be co-branded, is expected to open in March 2008.44

HOTEL, RESTAURANT, AND INSTITUTIONAL (HRI) SECTOR

India’s hotel, restaurant, and institutional (HRI) food service sector currently offers limited opportunities for imported products. Therefore entry into this sector would be secondary for most California exporters, with the exception of California wine. However, as in the retail sector, the organized segment of India’s HRI food sector is growing and offers increasing potential for imported goods. Specifically, consumer expenditure in the food service sector in India increased from $8 billion in 2003 to $13.5 billion in 2006/07 and is projected to increase 12-15

40 www.namdharifresh.com/ 41 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006.

www.fas.usda.gov/gainfiles/200612/146269832.pdf 42 http://nutsnspices.in/index.htm 43 www.indiaretailindustry.com/retail-top-food-retailer.htm 44 K S Narayanan. “Bharti-Wal-Mart’s Mega.” Newindpress.com 11 December 2007.

www.newindpress.com/NewsItems.asp?ID=IEB20071210194857&Page=B&Headline=Bharti-Wal-Mart's+mega+plan&Title=Business&Topic=0


percent in the next few years.45 Currently, most of the HRI sector purchases domestic food products (imported food products account for less than two percent) due to their competitive pricing, but with the growing demand for high quality products among consumers, this sector should be considered for potential opportunities in the future.46 The most promising opportunities are the hotel and restaurant segments. Hotels The growing number of domestic and foreign visitors is expected to open opportunities for California agricultural exporters in the hotel segment, as many hotels seek to fill demand for Western-style foods. Both luxury and business tourism have rapidly increased, due in part to increased interest from foreigners, the “Incredible India” tourism promotional campaign, and India’s rapidly growing economy. According to a survey conducted by HVS International, international hotel guests represented almost 25 percent of all guests in 2006. India receives the most visitors from the United Kingdom, accounting for 16.1 percent of foreign visitors followed by the U.S. with 12.3 percent.47 In 2003, FAS estimated there were 10,000 hotels of which only 1,800 were in the organized sector. In 2007, FAS has estimated that the number of hotels has doubled to 20,000 in the last four years; of these 2,100 are categorized in the organized sector. Most of the hotels are located around popular tourist destinations and concentrated in major metropolitan cities such as New Delhi, Mumbai, Chennai, Bangalore, and Hyderabad.

Top 10 Cities in India with Premium & Mid-Range Hotels Rating

City 5+ 4 3 TOTAL

Mumbai 22 11 26 59 New Delhi 23 10 5 38 Chennai 9 7 20 36 Kochi 5 4 17 26 Goa 16 1 8 25 Hyderabad 4 3 16 23 Bangalore 8 3 4 15 Jaipur 10 1 5 16 Ahmadabad 5 1 6 12 Pune 4 3 5 12

Source: Federation of Hotel and Restaurant Associations in India - FHRAI Imported products are most likely to be procured by mid-range (three to four star), premium (five star and up), and Heritage hotels (a hotel built before 1950 on a fort, palace or historical building) as they cater to high-end

45 Santosh Singh. “India HRI Food Service Sector Annual 2007.” USDA Foreign Agricultural Service. 14 December 2007.

www.fas.usda.gov/gainfiles/200712/146293269.pdf 46 Santosh Singh. “India HRI Food Service Sector Annual 2007.” USDA Foreign Agricultural Service. 14 December 2007.

www.fas.usda.gov/gainfiles/200712/146293269.pdf 47 HVS International


consumers and international travelers.48 The three-plus star hotels average at least two restaurants per hotel.49 Mumbai tops the list with a total of 59 hotels in the three-plus star range, followed by New Delhi and Chennai with 38 and 36 hotels respectively.50 FAS reports that of the total food budget of the luxury hotels in India, imported food products represent approximately five to 20 percent of the total and imported alcoholic beverages make up 40 to 60 percent of the total liquor budget. In 2006, food and beverage sales accounted for 25 percent of the hotel revenues.51

Organized Hotel Sector by Category (2007)

Others48%

Heritage4%

One Star1%

Two Star9%

Three Star23%

Four Star6%

Five Star9%

Source: FAS

Hotels in India generally purchase imported foods and beverages through wholesalers, distributors, or importers. Several larger hotel chains, such as Taj Hotels, Oberol Hotels, Ashok Group Hotels, and the Leela Palaces and Resorts, prefer to import through freight consolidators based in Dubai, Singapore, Europe and Bangkok. Currently, there are no hotels that source imported food products or alcoholic beverages directly from the U.S. although there are some international hotel chains or franchisees (Marriot and Nikko) that directly import products from other countries. In general, alcoholic beverages are purchased through importers, specifically private bonded warehouse operators and manufacturers, given that a majority of the hotels are allowed duty-free imports against their foreign exchange earning license. Restaurants Restaurants in India mainly purchase food products and ingredients locally, although some also import specialty products from other countries, such as bakery ingredients, french fries, cheese, meats, flavors, condiments, and other ingredients.


www.fas.usda.gov/gainfiles/200712/146293269.pdf 49 “Indian Hotel Industry Survey 2005-06.” HVS International February 2007. 50 Federation of Hotel & Restaurant Associations of India (FHRAI) www.fhrai.com. 51 “Indian Hotel Industry Survey 2005-06.” HVS International February 2007.


If they do purchase imported food products and beverages, they do so through wholesalers and distributors. Currently, the majority of imported food products are procured by Western-style fast food restaurants and restaurants serving other foreign cuisine. While the export opportunities are not presently strong, the potential is likely to grow in the future as more restaurant chains are developed and new international fast food chains, such as Wendy’s, Burger King, Taco Bell, and Starbucks enter the Indian market. There are no official data on the number of roadside eateries and tea/snack shops in the unorganized restaurant sector; however, FAS estimates there were between 100,000 and 500,000 in 2005. This compares to an estimated 700,000 restaurants in the organized sector in 2007, an increase from 500,000 in 2005. Growth in the restaurant sector is expected to increase seven to eight percent annually for the next few years as urbanization in India continues and disposable incomes increase.52 Growth in India’s restaurant sector is largely attributed to growing disposable incomes, a large population of young adults (20-34 year age group) and a popular “going out to eat” trend. The growth is particularly apparent in the rising number of Western-based fast food chains in India, which cater to the middle class consumers who have less time to shop and cook at home. Specifically, India’s young urban population is willing to buy restaurant food as they have more disposable income and less desire to cook at home. Also, women have increasingly found jobs outside of the home and now have less time to spend cooking. According to the HRAI Survey, an estimated 4.5 percent of urban Indian consumers eat out at least once a week and about 12 percent eat out at least once a month.53 Institutional Currently, there are very limited opportunities for California agricultural exporters in India’s institutional food service sector. This sector only purchases their food and beverages from domestic sources at this time.

CONSUMPTION TRENDS AND CULTURAL NUANCES

India’s rapid increase in incomes, falling poverty, changing lifestyles and preferences and developing retail sector will cause the food market to evolve dramatically in the coming years. This should provide market opportunities for imported goods, such as products from California. It is estimated that approximately 51 percent of household expenditures are on food in India, spent largely on basic items such grains, vegetable oils and sugar.54 However, surveys have indicated that consumer spending on value added food


www.fas.usda.gov/gainfiles/200712/146293269.pdf 53 Santosh Singh. “India HRI Food Service Sector Annual 2007.” USDA Foreign Agricultural Service. 14 December 2007.

www.fas.usda.gov/gainfiles/200712/146293269.pdf 54 Singh, Santosh Kr. “India Report – Retail Food Sector 2006.” USDA Foreign Agricultural Service. 21 December 2006.



products such as milk, meat, eggs, fruit, and vegetables will increase in the near future as the number of affluent consumers rises. Retail modernization in India has been driven by consumer demand for convenience and higher disposable incomes. Historically, consumers have shopped at different venues for specific products but due in part to the increasing number of women entering the workplace, consumers are looking for ways to make shopping easier and faster. Also, the disposable incomes of young adults are growing. These consumers are much more willing to spend money for the added convenience of a one-stop shop rather than spend time shopping for groceries at several locations. Consumption has also been shaped by changing consumer preferences for international foods. Westernization is inevitable as India’s young population continues to grow. The median age of India’s population is 25 years55 and approximately 40 percent of its population falls in the range of 20-44 years. These young middle-class consumers are heavily influenced by Western cultures as they gain knowledge through television and travel. Further, with more single young workers, nuclear families, working mothers, and fast-paced lifestyles, the new urban middle-class is spending more than previous generations on eating out and experimenting with alternative cuisines and more diverse food and beverage products. These changing mindsets and lifestyles provide significant opportunities for imported products. With over one billion people, all major world religions and ethnic strains can be found in India. Religion plays an important role in the consumption of various food categories. The majority of consumers in India do not consume meat due to their religious beliefs and the high cost of purchasing meat. Approximately 83 percent of India’s population is of the Hindu, Sikh, or Jains religion in which beef is considered taboo.

Religious compositions Population

All Religions 1,028,610,3281 Hindus 827,578,8682 Muslims 138,188,2403 Christians 24,080,0164 Sikhs 19,215,7305 Buddhists 7,955,2076 Jains 4,225,0537 Others 6,639,6268 Religion not stated 727,588

Source: Reproduced from Census of India, 2001 55 CIA World Fact Book


MARKETING AND PROMOTION

It is important to have effective marketing and promotion strategies for imported California agricultural products in India as these products are competing with low-cost alternatives produced locally and in neighboring countries. Selecting the right target stores, locations, timing of promotions, in-store advertising, merchandising and monitoring are crucial factors when carrying out an effective marketing and promotion program. Historically, there were very few methods to help build product awareness in India. However, in conjunction with the country’s rapidly growing economy, larger media and retail industries have emerged, altering consumption trends. In the past few years, consumption patterns in both urban and rural areas have been effectively influenced by advertising campaigns. In fact, advertising, now a $3.4 billion industry in India,56 has successfully generated significant demand for some products that were once unfamiliar to Indian consumers. The National Readership Survey 2006 estimated the audience reach of media publications (dailies and magazines) was 110 million in rural areas and 112 million in urban areas, representing an annual increase of three percent.57 Meanwhile, radio, which is the least expensive method of advertising in India, is making a comeback among consumers. In fact, the government-owned “All India Radio” (AIR) reaches over 90 percent of the population.58 Advertising on television also has significant reach, as most consumers have televisions in urban areas and the number of households in the rural area with televisions is rising. In a 2006 survey, the audience reach for television was 230 million people.59 Most food products build demand through a combination of trade and consumer marketing activities. Specifically, trade marketing through trade shows (a list of trade show opportunities can be found in Appendix IX) and trade relations activities help producers and manufacturers make and keep the necessary partnerships for successful distribution. Consumer marketing tactics including in-store promotions and television, newspaper, and magazine advertising are the most widely used methods to introduce a product, increase consumer awareness, and drive sales in India. Examples of in-store promotion activities that are successful for imported food products in India include sampling, distribution of product information, and in-store promotions. Indians are generally not impulse food shoppers; 90 percent of food purchases are planned.60 Therefore, conducting activities at the point of sale can be very valuable. This enables consumers to taste the product, obtain

56 “2007 India Country Commercial Guide.” U.S. Commercial Service. June 2007. www.buyusa.gov/india/en/ccg.html 57 Govindan, A. “India – Exporter Guide.” USDA Foreign Agricultural Service. 1 October 2007.

www.fas.usda.gov/gainfiles/200710/146292588.pdf 58 “2007 India Country Commercial Guide.” 59 Govindan, A. “India – Exporter Guide.” USDA Foreign Agricultural Service. 1 October 2007.

www.fas.usda.gov/gainfiles/200710/146292588.pdf 60 SCS Group


product information, and generally differentiate the offering from other products available. Contests, special promotional offers on food with an entertainment aspect, eye-catching creative displays, kiosks, danglers, visuals, wobblers, and floor splashes can also be used during the in-store promotions to attract attention. Given the current and growing health trend among the Indian population, particularly for the children and the elderly, materials emphasizing the health benefits can also be an effective method to increase awareness.61 There are many marketing and promotional opportunities to increase trade and consumer demand for California producers. However, timing of the promotions is critical. A large percentage of the total food expenditure for Indians is spent during major holidays, such as Diwali (Festival of Lights) and New Year. For this reason, promotions carried out during the winter season (October through December) are most effective when introducing new food products to Indian consumers.

V. COMPETITION AND DISTRIBUTION

Agriculture is the lifeblood of India’s economy and India produces a wide variety of agricultural products, including many of those produced in California. However, domestic production volumes are insufficient to meet demand, providing opportunities for California exporters.

LOCAL AGRICULTURAL ECONOMY AND PRODUCTION

Three fifths of the country’s workforce is employed in agriculture, which accounts for 17.5 percent of India’s gross domestic product (GDP).62 The agricultural sector has been slowly declining since 2000, while the industrial and service sectors have risen in terms of a percentage of GDP.63 Despite this decline, India’s agricultural sector remains a significant factor in India’s economy. The diverse climatic conditions - warm and humid due to the tropical monsoons in the south and moderate in the north - make India a major agricultural producer. In 2005, India produced approximately 239 million metric tons of cereals, 44 million metric tons of fruits, 82 million metric tons of vegetables, and one million metric tons of nuts.64 India is the third largest producer of cereals behind China and the U.S. and the second largest producer of fruits and vegetables in the world behind China. India’s land (slope and elevation), climate, and soil properties are very favorable for the production of horticultural crops almost year-round. A majority of the primary

61 SCS Group 62 CIA World Fact Book 63 “India Data Profile.” The World Bank Group. April 2007.

http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=IND 64 Food and Agriculture Organization of the United Nations (FAO)


crops are grown in the north, south, and west regions of India, with some production in the northeast and central India.65 The two tables that follow list the top ten fruits and vegetables produced in India. Despite India’s large production fruits and vegetables that California also produces, India will continue to be a large importer of agricultural products in order to meet internal demand of the country’s 1.1 billion people.

Top 10 Fruits Produced in India

2002 2003 2004 2005 2006 Commodity

1,000 metric tons Bananas 16,820 11,954 11,388 11,710 11,710Guavas/mangoes/ mangosteens 10,640 10,780 1,831 11,140 11,140Oranges 3,120 3,070 3,312 3,469 3,469Apples 1,160 1,470 1,522 1,739 1,739Lemons and limes 1,440 1,420 1,540 1,618 1,618Grapes 1,210 1,150 1,475 1,546 1,546Pineapples 1,180 1,310 1,234 1,229 1,229Papayas 700 700 751 783 783Pears 200 200 200 200 200Peaches and nectarines 150 150 155 160 160

Source: FAO

Top 10 Vegetables Produced in India

2002 2003 2004 2005 2006 Commodity

1,000 metric tons Eggplants (aubergines) 8,350 7,830 8,477 8,704 8,704Tomatoes 7,460 7,600 8,126 8,638 8,638Onions, dry 5,450 4,506 5,923 6,435 6,435Cabbages and other brassicas 5,680 5,800 5,595 6,148 6,148Cauliflowers and broccoli 4,890 4,800 4,940 4,508 4,508Pumpkins, squash and gourds 3,500 3,500 3,609 3,678 3,678Okra 3,320 3,530 3,631 3,525 3,525Peas, green 2,040 3,200 1,901 1,918 1,918Lettuce and chicory 790 790 802 810 810Other melons (inc. cantaloupes) 645 645 650 653 653

Source: FAO

65 “Fruit and Vegetables.” India AGRO Industry. December 2007. www.agriculture-industry-india.com/agricultural-

commodities/fruits-vegetables.html Production areas include: Jammu and Kashmir (North), Himachal Pradesh (North), North Uttar Pradesh (North), Punjab (North), Tamil Nadu (south), Karnataka (south), Andhra Pradesh (south), Gujarat (west), Rajasthan (west), Maharashtra (west), West Bengal (west), Orissa (west), Tripura (north east), Assam (north east), and Madhya Pradesh (central).


IMPORT TRADE AND STATISTICS Although India is a large producer of fruits and vegetables, India’s large and growing population makes it a large importer of agricultural commodities. California products enjoy varying degrees of market penetration, with opportunities to benefit from overall increases in demand as well as to steal share from competing suppliers. According the California Department of Food and Agriculture, India was the eighth largest California agricultural export destination in 2005 (most recent data available). The leading agricultural products exported from California to India were almonds, cotton, and table grapes. California almonds and grapes enjoy the widest access and perhaps the greatest opportunities in India among California products. Due in part from industry support and promotion, they have a strong presence in the market, and are well received by the Indian population. Despite growing competition from other countries, established trade and consumer support is expected to drive continued demand for these products. Other California products have also successfully entered the Indian market, but with lesser degrees of market penetration. For example, California oranges have a strong presence in India, although they are dwarfed by supplies from Australia. In addition, pistachios, figs, and raisins are exported in significant volumes, but account for a small fraction of total imports. The bulk of India’s imports of these products come from countries that are geographically closer to India, such as Iran and Pakistan. Given the close proximity of these suppliers, California may have difficulty competing due to transportation costs. As a result, California suppliers would do well to differentiate their offering to justify a higher price. The tables below display top Indian imports in the fruit, vegetable, and nut categories. There are also tables for specific commodities that India currently imports from California, including the commodities mentioned above. A brief explanation accompanies each table. Fruit

India - Top 10 Fruit Imports

2001 2002 2003 2004 2005 Fruit

1,000 metric tons Dates 121.6 125.94 117.63 98.94 116.26Apples 18.64 20.15 21.41 22.02 35.9Grapes 7.1 6.87 12.22 11.86 13.63Pears and quinces 1.22 2.65 2.37 2.73 4.31Fruit, nec (incl. persimmons) 0.82 0.64 0.81 0.69 2.9Oranges 0.17 0.7 0.73 0.8 1.66Kiwi fruit 0.19 0.28 0.32 0.39 0.73Lemons and limes 0.53 0.33 0.1 0.46 0.49Bananas 0.05 0.08 1.23 0.2 0.3Guavas, mangoes, mangosteens 0.11 0.21 0.25 0.25 0.25

Source: FAO


In 2005, India imported over 175,000 MT of fruit. The leading fruit imported was dates (116,260 MT) in 2005, followed by apples and grapes with total imports of 35,900 MT and 13,630 MT respectively.

Vegetables

India - Top 10 Vegetable Imports

2001 2002 2003 2004 2005 Vegetables

1,000 metric tons Garlic 27.58 47.76 18.75 19.73 5.86Peas, green 8.79 12 3.77 3.94 4.29Cabbages and other brassicas 2.39 2.72 0.14 2.19 1.97Other melons (incl. cantaloupes) 1 0.9 1.45 0.67 0.95

Legum. veg., nec 5.97 0.84 0.49 0.36 0.48Tomatoes 0.04 0.05 0.07 0.04 0.23Beans (incl. string), green 0.02 0.35 0.52 0.31 0.18Onions (incl. shallots) 0.17 0.13 0.32 0.19 0.1Vegetables, nec (incl. okra) 0.04 0.04 0.06 0.05 0.08Chilies and peppers, green 0.03 0.03 0.04 0.09 0.06

Source: FAO

India is a net exporter of vegetables. In 2005, India produced 82 million MT and consumed 75 million MT of vegetables. Meanwhile, India imported 14,200 MT of vegetables in 2005 with leading imports including garlic and green peas.

Nuts

India - Nut Imports

2001 2002 2003 2004 2005 Nuts

1,000 metric tons Cashew nuts 219.27 386.59 420.29 448.34 499.04Nuts, nec 41.79 43.88 47.67 80.8 101.16Almonds 25.69 24.78 26 26.68 33.12Pistachios 6.05 4.83 7.38 4.94 4.27Walnuts 0.38 0.42 0.45 0.6 0.32Hazelnuts 0.04 0.06 0.06 0.05 0.02Chestnuts 0.05 0.03 0.01 0.02 0.01

Source: FAO

India imports over 600 MT of nuts annually with cashew nuts and almonds being the primary imports. India is the third largest producer of cashew nuts, producing 573,000 MT in 2006. In 2005 India consumed over 660,000 MT of cashew nuts and almost 43,000 MT of almonds.


India Import Statistics and Market Analysis by Specified Commodity

GRAPES FRESH (HS 080610)

Value (US$ Million) Quantity (MT) Country

2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth

U.S. 1.25 1.16 -7.20 1,018.58 879.35 -13.67Australia 0.32 0.65 103.13 311.10 738.48 137.38Chile 0.10 0.35 250.00 105.10 297.98 183.52South Africa 0.03 0.06 100.00 19.70 43.10 118.78Italy 0.03 17.00 Total 1.75 2.25 28.57 1,454.48 1,975.91 35.85

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce66 Table Grapes: In FY 2006-07 (April – March), California table grapes accounted for almost 45 percent of the imported table grape market in India. Though California was the leading supplier of table grapes to India with exports of 879 MT, other countries’ table grape exports to India increased dramatically in the same period. Australia followed the U.S. with 738 MT of table grapes exported to India, followed by Chile with almost 298 MT in FY 2006-07. Australian exports increased 137.38 percent and Chilean exports increased 183.53 percent by volume during this period. Meanwhile, U.S. table grape exports to India declined by 13.67 percent. There are several factors that make India a good market for California table grapes. First, California table grapes do not compete with local production; table grapes from California appear in India when the availability of the domestic table grape declines. Second, “California Grapes” is a well recognized brand name in India.67 Lastly, upper-class Indians have a preference for seedless grapes, which bodes well for the California table grape industry as more of the population moves into this category.

PISTACHIOS FRESH OR DRIED (HS 080250)


2005-2006 2006-2007 % Growth 2005-2006 2006-2007 % Growth Iran 17.70 22.31 26.05 3,067.57 3,935.32 28.29Pakistan 13.26 1,483.29 Afghanistan 6.87 3.81 -44.54 1,197.69 439.88 -63.27United Arab Emerates 0.58 0.83 43.10 85.47 162.49 90.11

U.S. 0.04 0.01 30.19 301,800.00U.K. 0.03 5.20 Oman 0 0.18 Malaysia 0 0.06 Turkey 0 0.05 Saudi Arab 0.06 0 -99.77 7.50 0.03 -99.60Total 25.25 40.28 59.52 4,358.24 6,056.69 38.97

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce

66 Export Import Data Bank Version 6.0 Tradestat. Government of India - Ministry of Commerce & Industry

Department of Commerce. 2007. http://commerce.nic.in/eidb/Default.asp 67 SCS Group


Pistachios: While the U.S. is not a major supplier of pistachios to India, there is opportunity for growth. The total quantity of pistachios imported by India reached almost 6.1 million MT in FY 2006-07, of which U.S. market share was only 0.5 percent. By comparison, Iran and Pakistan are the leading suppliers of pistachios to India, representing nearly 90 percent of the imported pistachio market. The proximity of these competitors to India and current market position are major advantages. However, given the large size of the market, there is opportunity for California producers that have a competitive offering and can differentiate themselves from alternative supplies.

ALMONDS FRSH OR DRIED IN SHELL (HS 80211)


2005-2006 2006-2007

%Growth 2005-2006 2006-2007 %Growth

U.S. 122.88 136.85 11.37 20,600.77 33,162.18 60.98Australia 7.57 11.22 48.22 1,457.72 2,444.86 67.72Pakistan 4.56 1,891.35 Afghanistan 5.50 1.30 -76.36 1,713.76 613.12 -64.22Chile 1.68 0.19 -88.69 285.77 40.82 -85.72Iran 0.14 0.06 -57.14 23.00 29.54 28.43Sri Lanka 0.10 21.55 United Arab Emirates 0.02 0.10 400.00 12.00 21.00 75.00

Belize 0.06 20.41 Unspecified 0.09 20.41 China 0.13 18.20 U.K. 0.03 4.50 Syria 0.14 0 -100.00 31.08 1.00 -96.78South Africa 0 0.06 Total 138.20 154.70 11.94 24,124.10 38,289.00 58.72

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce Almonds: Within the nut category, almonds are a consumer favorite.68 Currently, India’s almond industry is small with production totaling 1,200 MT and domestic consumption estimated to be as high as 36,000 MT.69 This imbalance points to significant opportunity for world almond suppliers, including the U.S. The U.S. dominates the imported almond market in India exporting 33,162 MT in FY 2006-07. Australia, the U.S.’s closest competitor, exported 2,445 MT during the same period, followed by Pakistan with nearly 1,900 MT. Exports to India from these top three countries showed impressive growth in FY 2006-07, signaling continued growth in consumer demand.

68 SCS Group 69 SCS Group


FIGS FRESH OR DRIED (HS 080420)


2005-2006 2006-2007

%Growth 2005-2006 2006-2007 %Growth

Pakistan 22.38 3,210.73 Iran 0.18 0.37 105.56 188.39 388.80 106.37Afghanistan 13.09 0.41 -96.87 2,393.39 56.68 -97.63Turkey 0.01 0.05 400.00 4.37 30.00 586.50U.S. 0.07 0.04 -44.86 40.48 20.00 -50.59U.K. 0 0.01 Total 13.36 23.25 74.03 2,626.63 3,706.22 41.10

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce Figs (fresh and dried): Although the U.S. is not a major supplier of fresh or dried figs, the opportunity to become a larger supplier exists. According to FAO, India produced approximately 10,500 MT in 2004-05, while total consumption volume was double this figure at 20,000 MT. This trend has since continued. India’s imports of fresh and dried figs increased 41 percent from FY 2005-06 to FY 2006-07. The bulk of India’s fig imports are supplied by Pakistan, with Iran a distant second.

DRIED GRAPES (080620)


2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth Pakistan 0.04 7.98 19,850.00 53.47 4,651.10 8,598.52Afghanistan 11.39 5.33 -53.20 7,463.63 3,762.99 -49.58China 0.21 0.31 47.62 171.04 285.77 67.08Iran 0.02 0.04 100.00 60.00 89.40 49.00United Arab Emts 0.02 12.36 48.62 293.37

Uzbekistan 0.01 18.97 U.S. 0.01 0.02 100.00 4.74 10.96 131.22Thailand 0.01 6.06 U.K. 0 0.14 Turkey 0 0.10 Total 11.68 13.73 17.55 7,765.24 8,874.11 14.28

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce Raisins (Dried Grapes): U.S. raisins face strong competition from Pakistan and Afghanistan in India; these two suppliers account for 95 percent market share. Despite the U.S.’s small market share, exports from the U.S. have been growing, as has the size of the total market for imported raisins, which grew by 14.28 percent to 8,874 MT in FY 2006-07.


ORANGES FRESH OR DRIED (HS 080510)


2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth Australia 0.47 1.23 161.70 961.43 1,794.31 86.63U.S. 0.13 0.36 176.92 223.1 575.88 158.13South Africa 0.09 0.1 11.11 167.21 129.28 -22.68China 0.08 0.06 -25.00 182.79 96 -47.48Total 0.78 1.75 124.36 1,534.53 2,595.47 69.14

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce Oranges: There is strong competition from the domestic orange industry in India in terms of quality and timing, as Indian oranges are available in the market at the same time as California oranges. The U.S. increased its share of the Indian orange market in FY 2006-07, showing 158% growth in imports. However, Australia still exported more than three times the amount of oranges to India due in part to the favorable timing of its production season.

CHERRIES FRESH (HS 080920)


2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth U.S. 0 0.04 0.22 450.00Australia 0.01 0 -100.00 8.66 0.10 -98.85Singapore 0 0.02 U.K. 0 0.01 Total 0.02 0 -100.00 8.70 0.35 -95.98

Source: Government of India – Ministry of Commerce and Industry, Department of Commerce Cherries: India is not a major importer of cherries, though in FY 2006-07 the U.S. surpassed Australia to become the main foreign supplier of cherries to India. Although currently the demand for cherries is low, there appears to be a growing demand as the middle-class emerges and distribution systems improve. In order for California cherries to be truly successful in the Indian market, producers will have to build demand for imported cherries among the Indian population.

PEARS & QUINCES FRESH (HS 080820)


2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth China 0.75 1.26 68.00 2,113.35 3,574.33 69.13U.S. 0.69 0.53 -23.19 1,173.89 782.65 -33.33South Africa 0.37 0.36 -2.70 659.34 604.97 -8.25Australia 0.27 0.28 3.70 442.93 461.22 4.13Saudi Arab 0.02 0.01 -50.00 24.30 24.83 2.18Nepal 0 3.5 Total 2.10 2.44 16.19 4,413.81 5,451.50 23.51


Pears: The U.S. is the second largest supplier of pears and quinces to India, following China. (Note: The U.S. pears exported to India to date have been from Washington and Oregon.) The U.S. lost market share to China in FY 2006-07


despite an overall 23.51% increase in pear and quince imports. South Africa and Australia are also major suppliers of pears and quinces to India. India imports nearly 5,500 MT annually, with growth in the overall product category, providing opportunities to California producers despite stiff competition from dominant China.

Commodity: 080930 PEACHES INCL NECTARINES FRESH

Values in US$ Million Quantity Country

2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth Australia 0.06 0.04 -33.33 37.75 62.21 64.79Chile 0.01 23.00 U.S. 0.01 0.01 0.00 14.77 18.74 26.88Spain 0.01 0.02 100.00 7.20 18.18 152.50Austria 0 1.06 China 0 0.60 Oman 0 0.13 United Arab Emts 0 0.10

Saudi Arab 0 0.01 Singapore 0 0.24 Total 0.08 0.09 12.50 59.96 124.03 106.85


Peaches: Although the U.S. is the third largest supplier of peaches and nectarines in India, Australia eclipses other peach suppliers. In addition, California also competes with India’s domestic tree fruit industry. In 2006, India produced 160,000 MT of peaches and nectarines.

Commodity: 080940 PLUMS AND SLOES , FRESH Country Values in US$ Million Quantity

2005-2006 2006-2007 %Growth 2005-2006 2006-2007 %Growth Australia 0.11 0.1 -9.09 85.78 128.77 50.12U.S. 0.07 0.11 57.14 90.48 109.36 20.87Chile 0.02 0.07 250.00 28.32 67.85 139.58Italy 0.02 0.04 100.00 18.69 37.06 98.29Spain 0.02 1.55 17.63 1,037.42Thailand 0 1.17 0.35 -70.09Germany 0 0.02 Afghanistan Tis 0 0.34

Singapore 0 0.12 Total 0.22 0.34 54.55 226.45 361.04 59.43


Plums: Similar to peaches and nectarines, Australia is the leading supplier of plums to India, followed closely by the U.S. In the past two years, the growth of imports for plums has doubled, offering opportunity for additional market expansion for the California tree fruit industry.


Lemons: California lemons have little opportunity in the Indian market and have not been imported to India in the last three years due to strong domestic production of lemons and high barriers to entry. According to the National Horticulture Board, India produced 1.5 million MT of lemon in 2005. In addition, the high duty and transit costs have posed insurmountable barriers to market entry for California.

LOGISTICS

India’s significant distance from California and limited cold chain and other infrastructure can present logistical challenges for California products. As a result, it is recommended that California exporters work closely with trusted importers and distributors to ensure their products arrive in good condition at final points of sale.

Transportation Depending upon the perishability and shelf life of the product in question, California producers can ship via ocean or air. For example, significant volumes apples are being regularly shipped from the U.S. West coast to India. However, cherries and tree fruit require air shipment. Due to India’s high tariffs and sanitary and phytosanitary measures (SPS), many imported food products, including those from California, are transshipped through regional trading hubs such as Dubai. India’s eleven international ports are: Kandla, Mumbai, Mundra, Jawaharlal Nehru, Cochin, Murmagoa, New Mangalore, Chennai, Tuticorin, Vizagh, Paradeep, and Kolkata (FAS). Among these eleven major ports, one-fourth of all trade goes through Mumbai. Jawaharlal Nehru Port (near Mumbai) is India’s busiest port, handling 25.85 million MT between the months of April through September 2007. In addition to Mumbai, Marmagao (west) and Vishakhapatnam and Chennai (east) are other large ports (based on volume) in India. There are also approximately 139 minor working ports along India’s two coasts.

Airports Land Entry Points Seaports

• Amritsar (Punjab)

• Bangalore (Karnataka)

• Kolkata (West Bengal)

• Chennai (Tamil Nadu)

• Hyderabad (Andhra Pradesh)

• Mumbai (Maharashtra)

• New Delhi (Delhi)

• Agartala (Tripura)

• Amritsar Rly. Stn. (Punjab)

• Attari Rly. Stn.(Punjab)

• Attari Wagha Border (Punjab)

• Bongaon (West Bengal)

• Gede Road Rly. Stn. (West Bengal)

• Jogbani (Bihar)

• Alleppey (Kerala)

• Bhavnagar (Gujarat)

• Kolkata (West Bengal)

• Calicut (Kerala)

• Chennai (Tamil Nadu)

• Cochin (Kerala)

• Cuddalore (Tamil Nadu)

• Goa (Goa)

• Mumbai (Maharashtra)

• Mundra (Gujarat)

• Nagapatnam (Tamil Nadu)*

• Nova Shiva (Maharashtra)

• Navlakhi (Gujarat)

• Okha (Gujarat)

• Paradeep (Orissa)

• Pondicherry

• Porbander (Gujarat)*


• Patna (Bihar)

• Tiruchirapalli (Tamil Nadu)

• Trivandrum (Kerala)

• Varanasi (Uttar Pradesh)

• Guwahati (Assam)

• Moreh (Manipur)

• Panitanki (West Bengal)

• Raxual (Bihar)

• Rupadiha (Uttar Pradesh)

• Sonauli (Uttar Pradesh)

• Banbasa (Uttaranchal)

• Indore (Madhya Pradesh)

• Zokhwathar (Mizoram)

• Gopalpur (Orissa)

• Haldia (West Bengal)

• Jamnagar (Gujarat)*

• Beypore (Kerala)

• Kakinada (Andhra Pradesh)

• Kandla (Gujarat)

• Karwar (Karnataka)

• Krishnapatnam (Andhra Pradesh)

• Machlipatnam (Andhra Pradesh)

• Mandvi (Gujarat)

• Mangalore (Karnataka)

• Rameshwram (Tamil Nadu)

• Tiruvananthapuram (Kerala)

• Tuticorin (Tamil Nadu)

• Veraval (Gujarat)

• Visakhapatnam (Andhra Pradesh)

• Vizhinjam (Kerala)

*For import of food grains by Food Corporation of India only.

Source: FAS Understanding the need for additional ports and improved infrastructure, the government of India announced plans to begin building additional ports along the Delhi-Mumbai freight corridor in January 2008. These projects are forecast to be completed in seven years.70 In addition to the three new ports, the government of India also plans to build new roads, power plants, industrial estates and special economic zones within the corridor. Cold Chain/Infrastructure Once in India, California products face the problem of limited infrastructure. Of critical importance, cold storage facilities are still lacking. Although India is a major producer of fruits and vegetables, approximately 30 percent or US$13 billion in value of this produce reportedly deteriorates and is discarded due to the lack of cold chain facilities.71 Currently, the majority of perishable products are still transported in non-refrigerated or non-insulated vehicles and high rates of spoilage occur as a result.72 The situation is slowly improving, with investors beginning to develop roadways and the power generating facilities necessary to maintain refrigerated storage and transportation chains.73 However, the process of infrastructure improvement is only beginning, and it may be some time before concrete gains will be experienced. In the

70 “On the Road.” The Economist. 16 May 2007. www.economist.com/displayStory.cfm?story_id=9178857 71 Maheshwar, C. and Chanakwa, T.S. “Postharvest Losses Due to Gaps in Cold Chain in India - A Solution.” Acta Hort.

(ISHS) 712:777-784 www.actahort.org/books/712/712_100.htm. 72 SCS Group 73 Govindan, A. “India – Exporter Guide.” USDA Foreign Agricultural Service. 1 October 2007.



meantime, California agricultural exporters should work with local Indian importers/distributors that are already doing business with third-party logistics companies that can provide proper transportation to the targeted destinations. Distribution to Point of Sale In general, retailers and hotel/restaurants purchase imported food products through distributors, importers or consolidators. Rarely do they do business directly with California exporters due to the relatively small volumes that they purchase. As retailers grow in size, more are sourcing food products through importers, while the importers source mix containers directly from the exporting country. As mentioned in the retail section, India’s markets are geographically fragmented. Therefore, it is often necessary to have several different agents for different geographical regions. Hotels and restaurants typically purchase fresh produce from wholesalers and distributors; some larger hotels and restaurant chains purchase through consolidators. Most hotels and restaurants import liquor duty-free against their foreign exchange earning license therefore supplies are generally purchased through private bonded warehouse operators or importers.74 Major importers are located in Mumbai, Delhi, Chennai, and Kolkata. Lists of potential importers are provided in Appendix III – VIII by product category (fresh produce, dry fruit, wine, confectionary snack food, consumer food, and wine).

Distribution Channel in India

California Food Product Distribution Channel

Source: FAS 74 Santosh Singh. “India HRI Food Service Sector Annual 2007.” USDA Foreign Agricultural Service. 14 December 2007.



TRADE POLICY OVERVIEW In addition to challenges from competing countries and logistical factors, California exports also face trade restrictions and high tariffs in India.

Trade Regulations and Restrictions According to the U.S. Export Services, India’s new plant health import requirements are still under review by the U.S. The U.S. Export Services advises that until the review has been completed, all shipments of plants and plant products to India must include a phytosanitary certificate and import permit. Import permits must be submitted at least seven days in advance. A list of issuing authorities by location can be found in Appendix I.

Phytosanitary Requirements for Specific Commodities In addition to the phytosanitary certificate and import permit, India imposes additional phytosanitary requirements for specific commodities such as almonds and raisins. Almonds Almond shipments require an additional declaration on the phytosanitary certificate: “The shipment is free from Ephestia elutella, Ephestia kuehniella, and Plodia interpunctella.” Shipments must also be free from the following three pests: 1) Ephestia elutella (Tobacco moth), 2) Ephestia kuehniella (Mediterranean flour moth), and 3) Plodia interpunctella (Indian meal moth). In addition, almond shipments must be fumigated with phosphine or any other fumigant/substance in the manner approved by U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS), Plant Protection and Quarantine (PPQ) for this purpose so as to result in the complete mortality of all life stages of prohibited pests (listed above). Fumigation treatment details must be included on the phytosanitary certificate. When conducting any phosphine treatment, the commodity temperature must always be at or above 5ºC (41ºF). India does not allow any exceptions. Below are permitted treatment schedules:

Commodity temperature Exposure in Days

5-9.9ºC (41-49.9ºF) 10 10-14.9ºC (50-58.9ºF) 8 15-19.9ºC (59-67.9ºF) 4 20-24.9ºC (68-76.9ºF) 3 25.0ºC and above (77ºF and above) 2


The use of a phosphine/carbon dioxide mixture, such as Eco2Fume, is allowed but it must meet the same temperature and time durations as stated above for phosphine pellets, tablets, bags or trays. For pellets, tablets, bags, trays and Eco2Fume the application rate is 40 gm/1,000 ft3 = 4.41 lbs/1,000 ft3.

Raisins India requires methyl bromide (MB) fumigation treatments for raisins shipped from California. The following schedules conform to the methyl bromide label requirements, which also meet India’s treatment requirements:

• 51.8ºF to 60.7ºF/2 lbs MB per 1,000 ft³ • 60.8ºF to 69.7ºF/1.5 lbs MB per 1,000 ft³ • 69.8ºF and above/1 lb MB per 1,000 ft³

Guidelines for conducting chamber fumigations can be found in the treatment manual. Monitoring of tarpaulin fumigations should be as follows:

• 0.5 hour at 75% or more of original dosage • 2 hours at 50% or more of original dosage • 24 hours at 30% or more of original dosage

Documentation Requirements Aside from the phytosanitary restrictions and requirements, there is additional documentation required for import. India’s Central Board of Excise and Customs of the Ministry of Finance requires that the following documentation accompany food shipments to India:

• Bill of lading or airway bill • Commercial invoice • Packing list • Phytosanitary certificate

In addition, all food and agricultural products, including processed and packaged food, shipped to India must be accompanied by a certificate of origin. The certificate of origin must include the order number, container number, port of discharge, buyer’s name, and product description. A declaration stating, “The undersigned for [relevant organization] declares that the following mentioned goods as consigned above (or below) are the products of the United States of America. We hereby certify the goods to be of United States of America origin” must also be included on the certificate. Tariffs and Taxes Despite India’s reduction of tariffs and taxes since 1991, India is still highly protective of its domestic agricultural industry and its tariffs are among the highest in the world. India’s duties on agricultural products range from 25 to 150


percent with a majority at the 30 percent tariff rate. Tariffs on California raisins and wines are among the highest at 100 percent and 150 percent respectively. India levies the following tariffs on the specified products:

Product HS Code 2007 Tariff Code

Almonds (In Shell) 0802.11 35 INR/kg Almonds (Shelled) 0802.12 65 INR/kg

Pistachios 0802.50 30% Figs (Fresh) 0804.20.10 30% Figs (Dried) 0804.20.90 30%

Oranges 0805.10 30% Lemons 0805.50 30%

Table Grapes 0806.10 30% Raisins 0806.20 100% Pears 0808.20 30%

Cherries 0809.20 30% Peaches and Nectarines 0809.30 30%

Plums 0809.40 25% Processed Tomatoes 2002 30%

Processed Olives 2005.70 30%

Wine 2204 150% (sacramental wine - 30%)

Source: U.S. Department of State Furthermore, India levies numerous taxes on imported products, which include a landing charge, access deficit charge (ADC), education tax, and city, state, and regional taxes. The ADC tax was placed on imported products, with a few exceptions, such as fruit and vegetables, to account for the value added tax and other applicable taxes that pertained to domestic products. The additional fees and taxes may add up to an additional 30 percent when shipping to India. India levies the following taxes:

Taxes (2007)

Landing Charge 1% applied on CIF Access Deficit Charge (ADC) 4% based on the assessment is duty paid value

Education Tax 3% (Education Cess Tax - 2% of aggregate duties and the Secondary and Higher Education Cess Tax - 1% of aggregate duties)

City, State, and Regional Taxes Authorities levy a tax roughly 22% Source: U.S. Department of State

Labeling Requirements India has strict labeling requirements for imported packaged products. Products exhibiting only the standard U.S. label will not be allowed to enter and it is the importer’s responsibility to ensure that labels are applied to products prior to customs clearance. The Director General of Health Services (DGHS) requires that imported packaged food products adhere to labeling requirements provided in the recently amended Prevention of Food Adulteration Rules and Ministry of Commerce Notification No. 44 (RE-2000). Labels for imported packaged products must be printed in English or Hindi (Devnagari script) and be displayed in one of the following manners:


• Securely affixed to the package • Printed on an additional wrapper containing the imported package • Printed on the package itself • Printed on a card or tape affixed firmly to the package or container

Appendix II provides the information that must be included on the labels of imported products. In addition, information on wax coatings, requirements for nutritional labeling, irradiated product labeling, vegetarian labeling, allergenic labeling, and genetically modified organism (GMO) labeling are also provided in the appendix. Packaging Requirements All food products from California must adhere to the same packaging requirements. The Food Adulteration Rules provide general regulations concerning packaging for food products. Under the rules, all food packaging materials must meet the following general guidelines:

• Packaging must be kept in a clean and sanitary condition • Packaging must not be used for non-food storage purposes • Packaging must be stored to prevent contamination

The rules prohibit the use of materials such as polyvinyl chloride (PVC) in most cities due to environmental concerns and waste disposal problems. However, no standards exist for additives used in the manufacture of food packaging materials, nor is there a clear mechanism for registering new packaging materials in India. Trademark Laws The Office of Trademarks Registry is the Indian trademark authority and the 1999 Trademarks Act and 2002 Trademarks Rules provide the regulatory framework for trademark registration. Prior to registering a trademark, the office recommends that applicants search the Trademarks Registry to ensure that their mark has not been previously registered. To register a trademark, agents on behalf of applicants must submit an application with the following items and information:

• Depiction of the trademark • Goods and services classification: Based on Nice Classification

(www.wipo.int/classifications/fulltext/nice8/enmain.htm) • Name and address of applicant and agent (if any) • Power of attorney (if needed) • Intended period of use of the mark

Applications are available from the Government of India’s Ministry of Commerce and Industry Department of Industrial Policy and Promotion – Controller General of Patents Designs and Trade Marks’ website:


www.ipindia.nic.in/tmr_new/first_schedule_forms/the_first_schedule.htm It is important to note that it may take three to five years for the trademark to be officially accepted and notified. The following are fees related to the trademark registration process:

Service Required Form Fee in Indian Rupees (Rs.)

Fee in U.S. Dollars (USD)1

Official Trademark Search Request Form TM-54 500.00 12.00

Preliminary advice re: ability to register a mark Form TM-55 500.00 12.00

Trademark Registration Fee Depends on Type of

Registered Mark (Form TM-1, TM-2, TM-3, TM-8, TM-51)

2,500 62.00

Renewal of Trademark Form TM-12 5,000.00 124.00

Registration of a Removed Mark Form TM-13 5,000.00 124.00

Belated Renewal Surcharge Form TM-10 3,000.00 74.00 1Based on Currency Conversion Rate: 1 USD = 40.40 INR Food Additives India regulates food additives on imported food products, specifically Class II preservatives. Class II preservatives include:

• Benzoic acid and salts • Sulphurous acid and salts • Sorbic acid including its sodium, potassium and calcium • Salts (propionates of calcium or sodium, lactic acid, and acid calcium

phosphate) • Nisin • Sodium and calcium propionate. • Methyl or propyl Parahydroxy-Benzoate • Propionic acid, including esters or salts thereof • Sodium diacetate • Sodium, potassium and calcium salts of lactic acid.


Below are product specific content restrictions:

Product Class II

Preservatives Sulphur Dioxide Benzoic Acid

Synthetic Food Colors

Figs (Fresh) (HS 0804.20.10)

Figs (Dried) (HS 0804.20.90)

600

Oranges (HS 0805.10) 1,000

Lemons (HS 0805.50) 1,000

Table Grapes (HS 0806.10) 1,000

Raisins (HS 0806.20) 750

Pears (HS 0808.20) 2,000

Cherries (HS 0809.20) 1,000 2,000 None

Peaches and Nectarines

(HS 0809.30) 2,000

Plums (HS 0809.40) 1,000

Processed Tomatoes (HS 2002) 250 750

Wine (HS 2204) 450 450

Source: Indian Ministry of Health and Welfare Other Restrictions Sale of Insect Damaged Dry Fruits and Nuts Raisins, figs, almonds, considered damaged, yet sellable produce cannot have more than 5 percent insect-damaged by count. Product Irradiation India’s Food Adulteration Rules requires irradiated raisins and figs to adhere to specific requirements:

Dose of Irradiation

Minimum Maximum Overall Average

Raisins and Figs 0.25 0.75 0.50 Source: Indian Ministry of Health and Welfare


VI. ADDITIONAL INFORMATION FOR CALIFORNIA EXPORTERS

The following additional information is provided only as a reference for California exporters interested in doing business in India. The information was collected from the U.S. Embassy, New Delhi, SCS Group, and the U.S. Department of Commerce, U.S. Commercial Service.

LANGUAGE AND COMMUNICATION

Although Hindi is India’s leading national language, almost all Indian officials and business people are proficient in English. Communication technology has expanded, particularly in urban areas. Therefore, communication via e-mail and fax are good alternatives to telephone communication given the time difference between California and India.

BUSINESS CULTURE

Most business people in India have traveled abroad and are familiar with Western culture. Indians appreciate punctuality, but don’t always practice it themselves. There are a number of religious holidays that are celebrated in India. As a result, business in India is not typically conducted during these holidays. Contacting the Consulate or Embassy regarding holidays observed before scheduling a visit is recommended. Indians are very good hosts and will often invite you to their homes and indulge in small talk. This is part of the business culture. A small gesture of appreciation is always advised. For example, a box of sweets, chocolates or a bouquet of flowers would be positively received. In addition, family is strongly valued in India and the culture allows family to take priority over work whenever necessary. Additional information can be obtained from the following websites: • www.executiveplanet.com/index.php?title=India • www.stylusinc.com/business/india/business_india.htm

SCHEDULING APPOINTMENTS Meetings are often longer than planned; therefore keeping a fairly flexible schedule while in India is suggested. Scheduling meetings between 11:00 a.m. and 4:00 p.m. is preferable. It is also useful to confirm the meeting a few days in advance. When trying to schedule a meeting with a government official in India, it can be fairly difficult compared to scheduling a meeting with a private organization. It is usual for appointments with government officials to be rescheduled or delayed for several hours.


TIME TO VISIT Located in South Asia, the Indian climate varies from tropical to temperate. In general, October to March, which is India’s winter season, is the best time to visit India. During this time, the temperature can decrease to as low as 2-3ºC (35.6-37.4ºF) in the Northern mountains of India. However, in most other parts of the country, the average temperatures are a comfortable 15-25ºC (59-77ºF). Indian summers (April to June) can be very hot, with the temperature reaching 50ºC (122ºF) in many locations.

VII. CONCLUSION AND RECOMMENDATIONS

India’s large population and growing middle class have made it a desirable emerging market. The consumer base that can afford imported products is growing and the organized retail sector with the necessary infrastructure to handle fresh, perishable products is expanding rapidly. These conditions bode well for California agricultural exports.

However, market access and competitiveness must be assessed prior to moving forward with plans for market entry. Transport costs from the U.S., combined with some of the world’s highest tariffs (ranging from 25 to 150 percent) challenge the competitiveness of California products. In addition, market competition often includes both local production and other foreign supplies. California producers must offer a competitive offering, a differentiated product offering, or ideally both. Retail and foodservice entities rarely import directly, therefore, California exporters must seek out reliable local partners, including importers and distributors. These partners can assist in navigating various requirements for documentation and labeling. Since retail systems are fragmented, it may be necessary to work with more than one. We have provided importer lists in the appendices that follow. The Agricultural Trade Office may be able to assist with finding partners as well. Finally, as with any product introduction, trade and consumer promotional support will help to ensure greater success in the Indian market. Targeting this effort to reach the right consumers at the right place and at the right time is important for an effective product launch and demand building.

Bryant Christie Inc. appreciated the opportunity to work with the Buy California Marketing Agreement on this important research project. If you have any questions about information contained within this report please contact Amy Thompson at (206) 292-6340 or by email at [email protected].

Appendices

Appendix I Import Permit: Issuing Authorities Import permits are required to be submitted to the port of entry at least seven days in advance of arrival. Below is a list of issuing authorities by location. For all ports of entry for plants/plant materials and other items as: biocontrol agents, insects, microbial cultures, peat, soil, etc.:

Plant Protection Adviser to the Government of India Ministry of Agriculture Directorate of Plant Protection, Quarantine & Storage NH-IV, Faridabad, Haryana - 121001

For New Delhi Airport, States of Delhi, Harayana, Himachal Pradesh, J&K, Rajasthan, U.P. and Uttaranchal for plants/plant materials for consumption or propagation:

Deputy Director (PP/Ent.) National Plant Quarantine Station Rangpuri, New Delhi - 110037

For Amritsar Airport and all points of entry bordering Pakistan in the States of Punjab and UT Chandigarh for plants/plant materials for consumption or propagation:

Deputy Director (PP/Ent) Regional Plant Quarantine Station Ajnala Road, Near Airforce Station Raja Sansi Airport, Amrisar - 143101

For Chennai Airport/Seaport and all ports of entry in Southern Zone in the States of Andhra Pradesh, Karnataka, Kerala, Lakshadeep, Pondicherry, Tamil Nadu, and UTs A&N Islands for plants/plant materials for consumption or propagation:

Deputy Director (PP/Ent.) Regional Plant Quarantine Station GST Road near Trident Hotel Meenambakam, Chennai - 21

For Mumbai Airport/Seaport and all points of entry in Western Zone in the States of Daman & Diu, Gujarat, M.P. Chhatisgarh, Maharastra, Goa, and UT Dadra & Nagar Haveli for plants/plant materials for consumption or propagation:

Deputy Director (PP/Ent.) Regional Plant Quarantine Station Haji Bunder Road Sewri, Mumbai - 400 014

For Kolkata Airport/Seaport and all points of entry in Eastern Zone in the States of Arunachal Pradesh, Assam, Buhar, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura, and West Bengal for plants/plant materials for consumption or propagation:

Deputy Director (PP/Ent.) Regional Plant Quarantine Station F. b. Block Sector III Salt Lake City, Kolkata - 24

Appendix II Labeling Requirements Imported product labels must provide the following information:

• Name, trade name, or description of product • List of ingredients – Ingredients lists should adhere to the following requirements:

o All ingredients should be listed in descending order by weight or volume. o Food products sold as mixtures should include ingoing ingredient percentage of the

product by weight or volume at the time of manufacturing if the ingredient is included under the following conditions: (I) when emphasized on label through pictures (II) when needed to categorize the food in order to distinguish it from other types of products (III) when emphasized as ingredient in the product’s name (IV) when subject to a claim about fruits, sugars, or vegetables.

o Compound ingredients may be listed if its constituent ingredients are listed following the compound in brackets and in descending order by weight. Compound ingredients that constitute less than five percent of the product and do not have a technological function do not require listing.

o Added water must be declared in the list of ingredients except when water forms part of a compound ingredient such as brine, syrup, or broth.

o Dehydrated or condensed products requiring reconstitution must include the following statement: “ingredients of the product when prepared in accordance with the direction on the label”.

o Ingredients evaporated during processing do not require listing. o When a combined declaration of colors and flavors are given, their international code

number may be used. o Any product containing an extraneous addition of coloring matter must include a

declaration of its presence in the product. • Name and address of manufacturer and importer • Country of origin: The country of origin should be the country of the product’s last

processing prior to entry into India • Net weight or volume of contents: Liquid products must be declared by volume while solid

foods must be declared by weight. Semi-solid and viscous foods may include either weight or volume.

• Distinctive batch, lot, or code number • Preparation and storage instructions (if necessary) • Month and year the product was manufactured or packed • Month and year the product is best consumed: MOC Notification No. 22 (RE-2001)

requires that all imported food products have a valid shelf life of no less than 60 percent of its original shelf life at the time of importation. Shelf life of the product is calculated based on the declaration given on the label of the product, regarding the date of manufacture and expiration date.

• Maximum retail price (MRP)

Wax Coatings The implementation of the regulations pertaining to wax coating of fruits has been postponed from January 1, 2008 to March 1, 2008. According to the Prevention of Food Adulteration Rules (10th Amendment), fresh fruits may be coated with beeswax and carnauba wax, but all waxed fruits, packed or in loosen form, have to be properly labeled (name of the wax and best before date). Nutritional Labeling Requirements India recently released amendments to the Food Adulteration Rules that require the following nutritional information be listed on all food products as of August 20, 2007. All of the following nutrients must be measured in milligrams (mg) per 100 mg or 100 ml unless otherwise listed:

• Energy value should be listed in kilocalories (Kcal) per 100 milligrams (mg) or milliliters (ml) • Protein content • Carbohydrate content • Fat content • Fatty acids including polysaturated, monosaturated, and transfatty acids as well as cholesterol • Vitamin and mineral content

Irradiated Product Labeling Requirements The PFA Rules require that any food product that is irradiated during processing include a statement indicating the treatment. In addition, the license number of irradiation units should be included along with the international food irradiation symbol below.

International Food Irradiation Symbol Vegetarian Labeling Requirements Non-Vegetarian Products: Any product containing animal bi-products (including eggs) must have a symbol of a brown color-filled circle inside a square with a brown outline prominently displayed on the package, contrasting against the background on the principal display panel, in close proximity to the name or brand name of the food.

Non-Vegetarian Product Symbol Vegetarian Products: Vegetarian products must have a symbol of a green color-filled circle inside a square with a green outline prominently displayed on the package, contrasting against the background on the principal display panel, in close proximity to name or brand name of the food.

Vegetarian Product Symbol Allergenic Labeling Requirements The PFA Rules require that any food product containing allergenic or hypersensitive ingredients include the following declaration: “This (product) contains (allergenic or hypersensitive ingredient).” GMO Labeling Requirements Currently, India maintains no labeling requirements for food products containing genetically modified organisms (GMO). However, the DGHS released Notification G.S.R 152(E) in March 2006 that would require labeling declarations for food products containing GMOs. Declarations should indicate that the product has been subject to genetic modification. As of yet, the Indian government has yet to adopt the notification.

Appendix III

Indian Importers of U.S. Consumer Food Products

The following list is not comprehensive and is only provided as a starting point.

Name Company Address Telephone/Fax Email

Mr. Aliasgher Yusuf

Tajir Private Limited

Adie Mansion 334, Maulana Shaukatali Road Mumbai - 400 007

Tel: 91-22-2307-3314 /78776/86077/63612 Fax: 91-22-2307-2757 /78761

[email protected]

Mr. Suresh Kumar

Suresh Kumar & Company

A-17 Som Tower Dr Mukherjee Nagar Commercial Complex

Tel: 91-11-2765-100 Fax: 91-11-2765-3938 [email protected]

Mr. Uday Chugh

Exhilaron India P Ltd

211, Antariksh Bhawan, 22 Kasturba Gandhi Marg, Connaught Place New Delhi-110 001

Tel: 91-11-2373-0971 /72, 91-11-2684-8095 Fax: 91-11-2373-0972

[email protected]

Mr. Jehangir D. Lawyer Fortune Foods

107 Adhayar Industrial Estates Sun Mill Compound, Lower Parel Mumbai 400 013

Tel: 91-22-2495-5290 Fax: 91-22-2495-0387

[email protected] [email protected]

Mr. Hemal Shah

Foodline Enterprises

4th floor, Rajshree Castle Opp Balaji Mandir, Tilak Road, Ghatkopar east Mumbai 400077, Maharastra

Tel: 91-22-2500-4725, Mobile: 91-98-2035-7577 [email protected]

Mr. Puneet Gupta

Al Comps & Company

809A International Trade Tower Nehru Place, New Delhi

Tel: 91-11-2628-7004 /3/98-1029-6543 Fax: 91-11-2628-700


Mr. Kaivan Balsara Kaivan Foods

3 Kurla Industrial Estates LBS Marg, Ghatkopar (West) Mumbai 86

Tel: 91-22-2511-679 Fax: 91-22-2513-9318

kaivanfoods2003@rediffmail. com

Mr. Lalit Asrani Rodaa Ji Company

First Floor, G.I 30 (main industrial area) G.T Karnal Road, New Delhi-110033

Tel: 91-30978964 Mobile: 91-98-1001-6425 Fax: 91-98-1814-2101

[email protected]

Mr. Anil Chandok Chenab Impex

J1/A Ansal Industrial Area Saki Vihar Road, Saki Naka Mumbai 72

Tel: 91-22-2847-8880 /1623 Fax: 91-22-2847-0859

[email protected] www.chenabimpex.com

Mr. Joseph Thomas

Dukes’ Thompson International

E 260, Shalimar Bunglow Park Sukhliya, Madhya Pradesh Tel: 91-73-1406-6802

Mr. Sanjay Chawla U & I Exim P-3, Hans Aprtments East

Arjun Nagar, Delhi 32

Tel: 91-11-6529-0815 /91-120-225-0418 Fax: 91-12-0246-3862

[email protected]

Mr. Rajesh Bheda

Talakshi Lalji & Company

224/225 Gokul Arcade A Subhash Road, Vile Parle East Mumbai 57

91-22-2820-4247

Mr. Saket Khaitan SAKET IMPEX

Nilhat House, 5th Floor, 11, R.N. Mukherjee Road, Calcutta - 700001

Tel: 91-33-2243-5585 Fax: 91-33-2243-5597

[email protected] www.saketimpex.com

Mr. Rajiv Goyal Lamb Weston M-17, Kirti Nagar

New Delhi 110 015

Tel: 91-11-543-4659, 91-98-1006-5054 Fax: 91-11-511-6452


Mr. Rajesh Poddar

RR Trading Company

108, Jolly Bhavan No. 1 New Marine Lines, Mumbai 400 020

Tel: 91-22-2200-1411 /7387 Mobile: 91-98-2109-7762 Fax: 91-22-2200-7359

[email protected]

Mr. H.B. Irani HB Irani Bonds 579, MJ Phule Market Mumbai 400 001

Tel: 91-22-2340-1609 Fax: 91-22-2342-7963


Mr. Dinesh Dang Kandhar Traders

F-51, APMC Market – 1 Phase-II, Turbhe, Vashi Navi Mumbai - 400 705

Tel: 91-22-2766-5035 /59/99-6707-3555 Fax: 91-22-2765-5910

[email protected]

Mr. Kanwarjit Bajaj

Fairways Trading Company

581/7, Katra Ishwar Bhawan, Khari Baoli Delhi 110 006

Tel: 91-11-2391-3193 /2391-3199 Fax: 91-11-2294-1987

[email protected]

Mr. Diljit Singh Nimesh Cheda Harnav Trading

1, Jayshivshankar C.H.S, Shivaji Park Road No.5, Mumbai, Maharashtra, India – 400016 Nimesh Chheda

Tel: 91-22-3091-694 Mobile: 91-98-2122-0002

harnav_trading@rediffmail. com

[email protected]

Mr. Riyadh R. Oomerbhoy /G.M. Dangra, Managing Director/General Manager

R. R. Oomerbhoy Private Limited

5, Soona Mahal, 143, Marine Drive, Veer Nariman Road Mumbai - 400 020

Tel: 91-22-5639-9000 /5639-9090 Fax: 91-22-2202-6929


Mr. G.K. Nayar

Gee Kay Sales Corporation

C-15, Hari Nagar, Near DDU Hospital New Delhi 110 064

Tel: 91-11-2512-9085 /2549-6238/6264 Mobile: 91-98-6810-3833 Fax: 91-11-2512-7292/2614-8212

[email protected]

Mr. Subhash Dogra, Managing Director

Golfera Foods India Pvt. Ltd.

B-154 2nd Floor, Malviya Nagar New Delhi 110 017


Mr. Sanjay Jain Dugar Overseas Pvt. Ltd.

D 65 Anand Niketan New Delhi 110021

Tel: 91-11-5166-0446 /981187-2999 Fax: 91-11-5166-1310

[email protected]

Mr. Nilesh Agrawal, Director

Universal Corporation Ltd.

K-27, Lajpatnagar II New Delhi

Tel: 91-11-5172-4647 /48, 91-93-3108-0038 Fax: 91-11-5172-4649


Mr. Chetan Asrani GJ Foods Pvt Ltd.

1088, Balaswa Village, Outer Ring Road New Delhi 110 009

[email protected]

Mr. Prashant Asrani

A.M.K. Exim Pvt Ltd

B-320, Lok Vihar, Pitampura New Delhi Tel: 91-98-9150-7712 prashant_asrani1973@yahoo.

com Mr. B.K. Pardal, President

World Wines & Spirits

65A, Pocket 14, Kalkaji Extn New Delhi 110 019


Mukul Mehra Global Tax Free 87, Sainik Farms Central Avenue New Delhi 110062

Tel: 91-2955-1039 /2955-2574 /981-0810-1155 Fax: 91-2955-1683


Appendix IV

Indian Importers of Fresh Produce



Mr. Jitendra Lohani

DJ Exports Pvt. Ltd.

B-11, Basement, Gujrawala Town, Part I (Below Bank of Punjab), Delhi 110 009

Tel: 91-11-27121531 /1549/1550 Fax: 91-11-2721-3074

[email protected]

Mr. Gagan Khosla

NGK Trading Company

A 340, New Sabzi Mandi Azadpur, Delhi 110 033


Mr. Vinay Gidwani IFC International B - 153, New Fruit Market

Azadpur, Delhi 110 033 Tel: 91-11-2744-6267 Fax: 91-11-2740-8806 [email protected]

Mr. Lalit K Sethi Agro World C-601, New Subzi Mandi

Azadpur, Delhi 110 033 Tel: 91-98-1141-5081 Fax: 91-11-5213-3102 [email protected]

Mr. Girish Gaba

KLG Imports & Exports

B-160 New Subzi Mandi, Azadpur Delhi 110 033

Tel: 91-11-2725-1114 Mobile: 91-98-1160-5295, 91-93-1123-1001 Fax: 91-11-2721-9610

[email protected]

Mr. Vikas Singhal

Sarveshvar Commodities (India) Pvt. Ltd.

4088-4093 Naya Bazar Delhi 110 006


Mr. Anish Bindra A. T. Enterprises C-56, Azadpur Subzi Mandi

New Delhi - 110 033

Tel: 91-11-2711-4170 /2742-8020/4179-4875/76 Mobile: 91-98-1013-7867 Fax: 91-11-2741-2360


Mr. Sunil Sachdev Aayush Impex

F-28/29, APMC Fruit Market Sector-19, Vashi, Navi Mumbai 400 703


Mr. G.C. Arora I.G International F-85/86, APMC Fruit Market Sector-19, Vashi, Navi Mumbai 400 705

Tel: 91-22-2765-9084/9184 Fax: 91-22-2784-0684 [email protected]

Mr. Ambrish Karvat

Yupaa Group of Companies

609, Om Chambers, Kemps Corner, Mumbai 400 036

Tel: 91-22-2368-4895/96 Mobile: 91-98-2107-1711 Fax: 91-22-2368-4079

[email protected]

Mr. Nitin Agarwal

Euro Fruits Pvt. Ltd.

202, Vikas Commercial Center Next to Basant Cinema, Dr. C.G. Road, Chembur, Mumbai 400 074


Mr. Parin A. Shejwal Bombay Exports Matru Vatsalya, 33-35, Second Fofal

Wadi Bhuleshwar, Mumbai 400 002 Tel: 91-22-2240-6075 /2240-8642

Mr. Javed Memon

Kismat Fruit Traders

F- 61/62, A.P.M.C Fruit Market Sector-19 Vashi, Navi Mumbai 400 703


Mr. Deepak Dhir Pride Trading Co.

11/12, B-Wing, 6th Floor Groma House, Sector-19, Vashi, Navi Mumbai 400 703

Tel: 91-22-2766-6195 Fax: 91-22-2766-6194 Mobile: 91-93-2010-2205

[email protected]

Mr. Sagar Mahuli Pantheon Pvt. Ltd. 105, Atlanta, Nariman Point,

Mumbai 400 021

Tel: 91-22-4030-1234 (Board) Ext. 208, 91-22-4030-1208 (Direct) Fax: 91-22-2284-4417

[email protected] www.pantheon.in


Mr. P. K. Nath, Director – Intl. Trade

Jaideep International

H-646 APMC Fruit Market Sector-19, Vashi, Navi Mumbai 400 703

Tel: 91-22-2784-1423 Fax: 91-22-2784-7162

[email protected]

Mr. Arun Goenka, Director

Garden Fresh 227/2, AJC Bose Road, Ground Floor, Kolkata 700 020

Tel: 91-33-2287-5826 Fax: 91-33-2290-7706

[email protected]

Mr. Deepak Balsaria Gokul Vatika P-339, C.I.T, Road, Sch. – VIM,

Kolkata 700 054 Tel: 91-33-2352-9086/2364-9230/42

Mr. N.C. Alexander N.C.A. India T/A-118, Anna Fruit Market

Koyambedu, Chennai 600 092 Tel: 91-44-2479-7276 [email protected]

Mr. Ameerul Hussain

National Fruit Agency

T/A - 120, Anna Fruit Market Koyambedu, Chennai 600 092

Tel: 91-44-2477-9163 /487-3383 Fax: 91-44-2479-2598

ameerul@nationalfruits. com

Mr. S. Sathyanaranan

M/s. Benchmarx LLC.

A-2 Mathi Apts, AK-20, TAS Enclave 10TH Main Road, Annnagar West, Chennai 600 040

Tel: 91-98-4031-6449 benchmarx@rediffmail. com

Mr. D. Manivannan

D Manivannan & Co.

T/C - 39, T/D – 95, Anna Fruit Market, Koyambedu Chennai 600 092

Tel: 91-44-2479-1264 /5549-4228, 91-44-2479-1264

[email protected]

Mr. E. Duraisamy

E. Duraisamy & Bros.

T/B 110, Anna Fruit Market, Koyambedu, Chennai 600 092

Tel: 91-44-2477-0145 /2487-3899/5564-3030 Fax: 91-44-2477-0145

[email protected]

Mr. K Unnikrishnan Mudra Exports TA 138, Anna Fruit Market,

Koyambedu, Chennai 600 092

Tel: 91-44-2479-7018 Mobile: 91-98-4002-9915 Fax: 91-44-2479-4840

[email protected]

Mr. Suresh Kumar Khatumal

D D Impex 625, Big Bazar Street, Coimbatore 641 001


Mr. Q. Luqman Naushie Exports 55, New StreetKotta, Nagercoil 629 002


Mr. Javed Memon EAM & Sons 95, Fruit Market, Naroda Road,

Ahmedabad 380 025 Tel: 91-79-2220-3040 Fax: 91-79-2220-1642 [email protected]

Mr. Ramchand Gajumal Vadhwa

Gajumal Mulchand Fruits Pvt. Ltd.

24, New Fruit Market Naroda Road, Near Vijay Mill, Ahmedabad 390 025

Tel: 91-79-2220-4122 Mobile: 91-98-9807-8277 [email protected]

Mr. Mohammed Sadiq

MJ and Sons International

A#22, Fruit Market, Gaddianarm, Hyderabad 500 660

Tel: 91-40-2404-6887 Fax: 91-93-9001-2297

mjandsonsinternational @yahoo.com

Appendix V Indian Importers of Dry Fruit The following list is not comprehensive and is only provided as a starting point.


Mr. Muffadal Yousuf / Aliasger Yousoof


Adie Mansion 334 Maulana Shaukatali Rd. Mumbai 400 007

Tel: 91-22-2301-0446 /2307-8776 /98200-25152 Fax: 91-22-2307-8761


www.tajir.com

Mr. Subhash Bhatia

Uttam Chand Diwan Chand

#573, Katra Ishwar Bhawan Khari Baoli, Delhi 110 006

Tel: 91-11-2294-0632 /2397-6160, 91-98-1002-5745 Fax: 91-11-2391-9557

[email protected]

Mr. Raju Bhatia/ Rakesh Bhatia

Rakesh Kumar & Co

#573 Katra Ishwar Bhawan Khari Baoli, Delhi 110 006

Tel: 91-11-2395-4973 /2396-2294, 91-98-1001-9298 Fax: 91-11-2618-1746 /2291-7295

[email protected]

Mr. G. S. Kataria

Pratap Singh & Sons

Shri Pratap Udyog, 274, Captaion Gaur Marg Sriniwaspuri, New Delhi 110 065

Tel: 91-11-2684-8865 /2683-3386, 91-98-1002-7702 Fax: 91-11-2692-1206

[email protected]

Mr. Kanwarjit Bajaj

Fairways Trading Company

#581/7, Katra Ishwar Bhawan Khari Baoli, Delhi 110 006

Tel: 91-11-2391-3193 /2391-3199, 91-98-1005-6619 Fax: 91-11-2294-1987

[email protected]

Mr. Vikas Bansal

Nirmal Agro Foods


Tel: 91-11-6565-5618, 91-98-1102-5048 Fax: 91-11-2686-6948 /2393-0132

[email protected]

Mr. Charanjit Singh, Proprietor

Bhai Pardhan Singh & Sons


Tel: 91-11-2392-5412 /2398-4777, 91-98-1011-6604/05 Fax: 91-11-2398-9373

[email protected], [email protected]

Mr. Dinesh R. Dang Kandhar Traders

Shop No. F - 51, A. P. M. C. Market - 1, Phase -2, Turbhe, Mumbai 400 705

Tel: 91-22-2766-5035 /5059, 91-98-2111-3907 Fax: 91-22-2765-5910

[email protected]

Mr. Vijay Nagpal, Director

Speedway Food & Beverage Pvt. Ltd.

B-205, Derawala Nagar Delhi 110 009

Tel: 91-11-2712-8787 /88/2711-8788, 91-98-1011-5858 Fax: 91-11-2711-8787


Mr. Suniel Chabria

Dolathram Thikamdas

Shop No. F – 45/46, A. P. M. C. Market – 1, Phase -2, Sector-19, Turbhe, Mumbai 400 705

Tel: 91-22-2766-6189 /3098-3020, 91-98-2007-2608 Fax: 91-22-2756-7118


Mr. Mukesh Dattani, Director

The African Trading Co. Pvt. Ltd.

3/C Avsar , 77/81 Kazi Sayed Street Mumbai 400 003

Tel: 91-22-2766-2272, 91-98-2080-4900 Fax: 91-22-2413-4459

[email protected]

Mr. Devang Mehta, Director D. R. Corporation

76-80/3, Dr. Kuverji Raishi Road, Mumbai 400 009

Tel: 91-22-2371-6453 /2372-3600/3095-0023 Fax: 91-22-2373-8430

[email protected]


Ms. Babso Kanwar

Permedia Foods Pvt. Ltd.

39 The Arcade, World Trade Center Mumbai 400 005

Tel: 91-22-2218-8885/6 Fax: 91-22-2218-2189

babsokanwar@permediafoods. com

Mr. Baljit S. Chadha, P.C., President

Balcorp Limited 512 Ansal Chambers II 6 Bhikaji Cama Place, New Delhi 110066

Tel: 91-11-2619-4792 /2610-1305

Mr. Narayanan Rajagopalan, CEO

Dalmia Continental Pvt. Ltd.

10, Daryaganj, New Delhi 110 002

Tel: 91-11-2324-6198 /2327-7823 Fax: 91-11-2327-7875

narayanan@leonardoolives. com

Mr. Gunjan V Jain

V.K.C. Nuts Private Ltd.

52 B Birpur Industrial Estates Bari Brahmna, Jammu, J&K 181 113

Tel: 91-19-2322-0292 /2738, 91-94-1918-6602 [email protected]

Appendix VI

Indian Importers of U.S. Confectionary Snack Food Products



Mr. Atul Khanna

Optimum Marketing Pvt Ltd

203, Okhla Estate Delhi 83

Tel: 91-11-5100-0034 /35/36 Fax: 91-11-5100-0037

[email protected]

Mr. Aliasgher Yusuf


Adie Mansion 334, Maulana Shaukatali Rd. Mumbai - 400 007

Tel: 91-22-2307-3314 /78776/86077/63612 Fax: 91-22-2307-2757 /8761

[email protected]

Mr. Suresh Kumar

Suresh Kumar & Company

A-17 Som Tower Dr Mukherjee Nagar Commercial Complex Delhi 110 009

Tel: 91-11-2765-1001Fax: 91-11-2765-3938 [email protected]

Mr. Uday Chugh

Exhilaron India P Ltd

211, Antariksh Bhawan, 22 Kasturba Gandhi Marg, Connaught Place New Delhi-110 001

Tel: 91-11-2373-0971 /72/2684-8095 Fax: 91-11-2373-0972

[email protected]

Mr. Puneet Gupta

Al Comps & Company

809A International Trade Tower, Nehru Place, New Delhi

Tel: 91-11-2628-7004 /3, 91-11-98-1029-6543 Fax: 91-11-2628-7003


Mr. Kaivan Balsara Kaivan Foods

3 Kurla Industrial Estate LBS Marg, Ghatkopar (West) Mumbai 86

Tel: 91-22-2511-6795 Fax: 91-22-2513-9318

kaivanfoods2003@rediffmail. com

Mr. Lalit Asrani Rodaa Ji Company

First Floor, G.I 30 (main industrial area) G.T Karnal Road, New Delhi-110033

Tel: 91-11-3097-8964 Mobile: 91-98-1001-6425 Fax: 91-98-1814-2101

[email protected]

Mr. Rajesh Poddar

RR Trading Company

108, Jolly Bhavan No. 1 New Marine Lines, Mumbai 400 020

Tel: 91-22-2200-1411 /7387 Mobile: 91-98-2109-7762 Fax: 91-22-2200-7359

[email protected]

Mr. Nilesh Agrawal, Director

Universal Corporation Ltd.

K-27, Lajpatnagar II New Delhi

Tel: 91-11-5172-4647 /48, 91-93-3108-0038 Fax: 91-11-5172-4649


Mr. Diljit Singh /Nimesh Cheda

Harnav Trading

1, Jayshivshankar C.H.S, Shivaji Park Road No.5, Mumbai, Maharashtra, India - 400016 Nimesh Chheda

Tel: 91-22-3091-6948 Mobile: 91-98-2122-0002

harnav_trading@rediffmail. com nimeshchheda@rediffmail. com

Mr. Pankaj V Agrawal

Ichimaan Enterprise Private Limited

1st Floor, Ilaco House Sir P. M. Road, Above Punjab National Bank, Fort, Mumbai - 400 001

Tel: 91-22-2267-9918, 91-98-2012-3650 Fax: 91-22-2266-5188

pankajvagarwal@rediffmail. com [email protected]


Mr. G.K. Nayar

Gee Kay Sales Corp.

C-15, Hari Nagar, Near DDU Hospital New Delhi 110 064

Tel: 91-11-2512-9085, 91-11-2549-6238/6264 Mobile: 91-98-6810-3833 Fax: 91-11-2512-7292, 91-11-2614-8212

[email protected]

Mr. Sanjay Jain Dugar Overseas Pvt. Ltd.

D 65 Anand Niketan New Delhi 110021

Tel: 91-11-5166-0446, 91-98-1187-2999 Fax: 91-11-5166-1310

[email protected]

Mr. Chetan Asrani GJ Foods Pvt Ltd.

1088, Balaswa Village, Outer Ring Road New Delhi 110 009


Mr. Prashant Asrani

A.M.K. Exim Pvt Ltd

B-320, Lok Vihar, Pitampura New Delhi Tel: 91-98-9150-7712 prashant_asrani1973@yahoo.

com

Mr. B.K. Pardal, President





Tel: 91-98-2955-1039, 91-98-2955-2574, 91-98-1081-01155 Fax: 91-98-2955-1683

[email protected]

info@globaltaxfreetraders. com

Appendix VII Indian Importers/Distributors of Liquor and Wine The following list is not comprehensive and is only provided as a starting point


Mr. Subhash Dogra, Managing Director

Golfera Foods India Pvt. Ltd.

B-154 2nd Floor, Malviya Nagar New Delhi 110 017

Tel: 91-11-2668-5536Fax: 91-11-2463-3962 [email protected]

Mukesh Sinham, General Manager Brindco Sales Ltd S-53, Okhla Phase – II

New Delhi 110020

Tel: 91-11-5161-6432, 91-93-1294-3385 Fax: 91-11-2638-6618

mukesh.sinha@brindcolimited. com

Rukn Luthra Seagrams India

Tower-B, 7th Floor, Global Business Park, Mehrauli Gurgaon Road, Haryana

Tel: 95-12-4406-0885, 95-98-1034-5453 Fax: 95-124-235-8067

[email protected]

Mr. B.K. Pardal, President




Ms. Firdaus Khan Chaudhary Francis Wacziarg A-58, Nizamuddin East,

New Delhi 110 013 Tel: 91-11-2435-5910/01 Fax: As above [email protected]

Mr. Rajiv Singhal Ritu Overseas 6F Vandhana, 11 Tolstoy Marg New Delhi 110 001


Mr. Sanjiv K Singh TT&G Trading Pvt Ltd

124, Thapar House, Janpath New Delhi 110 001

Tel: 91-11-2336-8811/ 332, 91-98-1130-2823 Fax: 91-11-2336-8729

[email protected]

Mr. H.B. Irani HB Irani Bonds 579, MJ Phule Market Mumbai 400 001



Tel: 91-98-2955-1039 /2574, 91-98-1081-01155 Fax: 91-98-2955-1683


Mr. Amrit Kiran Singh

Brown Forman Worldswide, LL

A11/23, DLF Qutub Enclave Phase I, Gurgaon Haryana-122002

Tel: 91-124-2355466 /2359560/2364561-3 /9810194409 Fax: 91-124-2356866

[email protected]

Mr. Sanjay Menon Sansula 95 Mittal Chambers, Nariman point Mumbai 400 021

[email protected]

Appendix VIII

Indian Food Retail Chains


Name Company Address Telephone/Fax Direct

Telephone Email

Mr. Vijay Kumat, Head International Business

Tel: 91-991-0347-8999 [email protected]

Mr. Sanjeev Asthana, President Agri & Food Supply Chain

Reliance Retail (Reliance Industries Limited)

Ground Floor, DLF Infinity Tower C DLF City Phase II, Gurgaon 122 002

Tel: 91-12-4457-4600 /750 Fax: 91-12-4430-1873 /74


Mr. Damodar Mall, President Food Business Division

Tel: 91-93-2427-6408

damodar.mall@ pantaloon.com

Mr. Arvind Chaudhary, Business Head – Food

Food Bazaar (Future Group)

Knowledge House, Shyam Nagar Jogeshwari East Mumbai 400 060

Tel: 91-22-6644-2200 Fax: 91-22-6644-2201 Tel: 91-93-2402-

9473 arvind.chaudhary@

pantaloon.com

Mr. Arbind Das, Vice President

dasarabind@ adityabirla.com

Mr. Satish Kokade, Head – Food Buying

Aditya Birla Retail Limited

Near Le Merdian Hotel, Sahar Andheri East Mumbai 400 099

Tel: 91-22-6680-5555 Fax: 91-22-6680-5394 Tel: 91-99-2046-

7739 satish.kokade@ adityabirla.com

Ms. Gayatri Kohli, Head Specialty Food

Spencer’s Retail Limited (RPG Group)

Duncan House, 1st Floor, 31 Netaji Subhas Road Kolkatta 700 001

Tel: 91-33-4411-5600 Fax: 91-33-2231-8761 /62


Mr. Norman Yum, Chief Executive Officer

Norman.yum@ foodworld.in

Mr. S Srinath, Operation Director

Foodworld Supermarkets Limited

No. 740, Easwari Industrial Estate Gate No 2, Hulimavu, Bannerghata Road Bangalore 560 076

Tel: 91-80-5110-9702 /709 Fax: 91-80-5110-9710 Tel: 91-98-4424-

4044 [email protected]

Mr. Chandrasekhar, DGM Commercial

Subiksha Stores 37F, Tambaram Velacherry Rod Velacherry, Chennai 42

Tel: 91-44-2243-2950 Fax: 91-44-2243-2929


Name Company Address Telephone/Fax Direct

Telephone Email

Mr. N.C. Venugopal, Managing Director

[email protected]

Mr. Keith D’Cunha, Vice President Intl. Business

Nilgiri’s Supermarkets (The Nilgiri Dairy Farm Pvt. Ltd.)

171, Brigade Road, Bangalore 560 001

Tel: 91-80-2558-1859 /2558-8401 Fax: 91-80-2558-2853 Tel: 91-98-4425-

3820 [email protected]

Ms. Eva Murch, Head Buying & Merchandising


Mr. Jean-Luc Poincot, Deputy Director Buying & Merchandising Food

Metro Cash & Carry India Pvt Ltd.

Survey No 26/3, A Block Ward No 9, Industrial Suburbs Subramanyanagar, Bangalore 560055

Tel: 91-80-2219-2000 Fax: 91-80-2219-2249 Tel: 91-99-0060-

0124 jean-

[email protected]

Mr. M.S. Rao, President

Tel: 91-98-4811-0999

president@ heritagefoods.co.in

Mr. P. Harish Kumar, Head – Agribusiness

Fresh @ Heritage Foods (India) Limited

6-3-541/c, Panjagutta Hyderabad 500 082

Tel: 91-40-2339-1221 /3295-5688 Fax: 91-40-2331-8090

Tel: 91-93-9156-9996 harish@ heritagefoods.co.in

Mr. Uday Singh, Chairman & Managing Director

Namdhari’s Fresh (Namdhari S. Pvt. Ltd.)

119, 9th Main Road, Ideal Homes Township Rajarajeshwarinagar, Bangalore 560 098

Tel: 91-80-2860-2167 /69 Fax: 91-80-2860-2168

Tel: 91-98-4547-1271/72

usingh@namdhariseeds. com

Mr. M. Srinivasa Rao, Head –New Initiatives

ITC Fresh Stores (ITC Limited)

31, S.D. Road Secunderabad 500 003

Tel: 91-40-2780-3401 /00875 Fax: 91-40-2780-4476


Mr. Raju Shete, Chairman

RK Foodland Pvt Ltd

Radha Krishna House, Majiwada Village Rd. Majiwada, Thane 400601

Tel: 91-22-2598-6464 Fax: 91-22-2597-1767 /1395

[email protected]

Mr. Sunil Sanklecha, Managing Director

Nuts ‘n’ Spices 14, Krishnamma road Nuagambakkam Chennai 34

Tel: 91-44-2821-3040 Fax: 91-44-2821-4050

nutsnpices@ hotmail.com

Mr. V.P. Chokani, Director

Vitan Super Stores 21 Spur tank Road Chettet, Chennai 31

Tel: 91-44-2825-2075 Fax: 91-44-2822-5874

[email protected]

Mr. Ted Huffman Wal-Mart India*

Bharti Airtel Office 1/F First India Place, Vatika Centre MG Road, Gurgaon

Tel: 91-12-4417-3400

Tel: 91-98-7177-3905

Ted.Huffman

@wal-mart.com

*Wal-Mart has a joint venture with the Indian company Bharti Group for retailing in India

Appendix IX Trade Shows • India International Fine Food & Wine Show

January 17-19, 2008 New Delhi The event showcases varieties food and beverages from around the world. Visitors include hoteliers, restaurateurs, bar and pub owners, importers and exporters of foods and drinks, producers, supermarkets, wholesalers, bonded warehouses, distributors, retailers, food consultant technologies. Exhibitors include: bakery & confectionary products, biological food products, condiments, mineral water, coffee & tea, accessories & articles for the cellar & bars & restaurants, machinery & equipment for fresh & preserved products, olive & other edible oils, packaged foods, ready to eat & cook food products, machinery & equipment for wine growing, cellar & wine collection.

• Food and Beverages India

January 25-28, 2008 Mumbai This exhibition provides information on various aspects of food technology development including production, storage, processing, refrigeration, packaging and marketing of food and beverages.

• Panacea

January 30 – February 1, 2008 Mumbai The show highlights exports and imports of natural products to and from India. This show helps create awareness for your brands, single point interface with end consumers, establish new business ties/reinforce existing ones, a meeting point of demand and suppliers in the natural products and allied industries. Buyers and exhibitors discover new products and new businesses and can attend informative and educational seminars. www.biztradeshows.com/panacea-exhibition-expo-mumbai/

• Foodex India January 24 – 27, 2008 Ahmadabad, Gujarat A platform for the food industry, food processing technology, food packaging technology, cold supply chain and the retail chain segment. www.biztradeshows.com/trade-events/foodex-india.html

• Agrifare January 24 – 27, 2008 (runs concurrently with Foodex India) Ahmadabad, Gujarat Agrifare covers a variety of consumer and industrial products, services, machinery and technology. www.biztradeshows.com/trade-events/agrifare.html

• Food Retailing Expo January 31 – February 2, 2008 New Delhi The expo is designed for Indian food companies, inputs suppliers and farmers to meet suppliers in the food retail industry and potential buyers who have the capacity and interest in purchasing healthy foods. www.biztradeshows.com/trade-events/food-retailing-expo.html

• AAHAR March 10-14, 2008 New Delhi According to USDA FAS, AAHAR 2008 is one of India’s most important food shows. In 2007 there were more than 325 exhibitors and about 25,000 business visitors. AAHAR is a platform for facilitating growth and modernization in the processed food and hospitality sector. The fair attracts domestic and foreign manufacturers, distributors, and suppliers. www.biztradeshows.com/trade-events/aahar.html

• Food & Healthcare Expo April 2008 Bangalore

Exhibitors include agriculture products, air and water pollution control equipment, bakery, confectionary and dairy products, beverages, bottling and canning technology, cold storage, air conditioning, refrigeration, freezing machinery equipments, dairy, bakery and confectionery equipment and machinery, health and fitness equipment, ice cream & desserts making machines, processed foods, sea foods, spices, frozen foods, packing, labeling, waste water treatment. www.foodexpo2007.com

• International FoodTec India / Sweet & Snack Factory India

October 15-17, 2008 New Delhi Exhibitors represent the processing and packaging, food ingredients, beverage technologies, cooling and refrigeration industry. The event is paralleled with the Dairy Universe and Sweet & Snack Factory trade shows which focus on the dairy industry and the sweet industry. www.foodtecindia.com www.sweetsnackfactory.com

• Krishi 2007

November 29 – December 3, 2007 Nashik Exhibitors include agriculture, floriculture, aquaculture, animal husbandry, poultry/hatchery, dairy products/machinery, agro forestry, farm equipment, farm machinery, nets, fertilizers, organic manure, pesticides, seeds, cattle food, food processing, irrigation systems, greenhouse, cold storage, solar equipments, cottage industries, packaging/processing, windmills, telecommunication instruments, and rural housing. www.biztradeshows.com/krishi/

• Foodpro

November 23 – 27, 2007 Chennai This show focuses on the current trends in food processing; innovation through modern technology, which will be reflected in the products exhibited, and the concurrent events. www.foodpro.in/food2007/home2007.php

• Annapoorna – World of Food India November 13 - 15, 2008 Mumbai

Participants exchange innovation, ideas and business contacts for the food and beverage industry. The objectives of the show are: 1) promote your food products to the global range of visitors, 2) joint venture partnership, project collaborations, investments, and 3) create brand awareness, sales promotion, and launch new products. www.worldoffoodindia.com/

• IFE India December 6-8, 2007 New Delhi The event focuses on food, drink and hospitality industry trade professionals across India. www.ife-india.com/

Documents

INDIA RESEARCH STUDY FOR CALIFORNIA AGRICULTURAL EXPORTERS · PDF filereport india research study for california agricultural exporters bryant christie inc. i nt ernat i o n al a ff